Planning for your child’s future? Learn how a special needs trust can protect benefits, secure long-term care, and bring peace of mind. Discover the difference between first- and third-party trusts and how Ettinger Law Firm helps families safeguard their loved ones’ financial futures.
written by Ettinger Law Firm
The future presents unique challenges for young people with disabilities. Parents or grandparents must consider how their child will continue receiving ongoing government benefits while paying for what they need. Starting a special needs trust with an experienced firm like Ettinger Law Firm can secure both essential details. Caregivers should learn about the process to decide if it is right for their loved one.
Post Contents
- What Is a Special Needs Trust?
- Benefits of Establishing a Trust
- The Child Will Continue Receiving Government Support
- Funds Remain Protected From Outside Groups
- Special Needs Trusts Skip the Probate Process
- Caregivers Get Peace of Mind
- Why People Contact Ettinger Law Firm for Special Needs Trusts
- Steps to Start a Special Needs Trust
- Safeguard the Future With a Trust
- Related Posts On This Blog
What Is a Special Needs Trust?
A special needs trust is a legally protected fund that sets aside money for someone with a disability. Beneficiaries can use it for quality-of-life needs that their government benefits do not cover, like extended medical bills or education services.
Caregivers must choose between two types of special needs trusts. A first-party trust begins with the child’s money earned through sources like a job, residual earnings or an inheritance. The trust comes with a payback provision, so the government gets refunded for any benefits the child received before passing away. Caregivers must coordinate accounting services and annual reports for the trust as their state requires.
Parents or grandparents can also start a third-party trust using their money rather than the child’s. Third-party trusts do not have a payback provision because the money did not come from the beneficiary. If the child dies, the balance goes to their surviving siblings or children.
Ettinger Law Firm works with both kinds of special needs trusts. Interested caregivers can discuss their options based on their current financial situation.
Benefits of Establishing a Trust
Some people may wonder if starting a trust is worth the effort. The ongoing reporting in tax preparation may take time, but there are numerous benefits to creating a trust for any child with a disability.
The Child Will Continue Receiving Government Support
People who earn more than $2,019 monthly may not receive the government benefits they need. The income limit can expand beyond employment. Someone with a disability could continue receiving government benefits if their money is in a special needs trust. Their direct ownership would remain limited, which prevents them from accessing the funding that otherwise makes people ineligible for things like Supplemental Security Income and Medicaid.
Funds Remain Protected From Outside Groups
Money in special needs trusts is off-limits to anyone outside the beneficiary. Lawsuits and creditors cannot access the funds. The safeguards keep beneficiaries from potential mismanagement caused by outside sources who want to exploit them. The beneficiary will always have a source of income to pay bills and maintain their quality of life.
Special Needs Trusts Skip the Probate Process
When a caregiver dies, an executor starts the probate process. Probate standards may take weeks or months to complete, which would leave the child with disabilities without the necessary funding during that time. Special needs trusts do not go through the probate process. Beneficiaries can immediately access their assets if their caregiver can no longer help them.
Caregivers Get Peace of Mind
The estimated 63 million people caring for an adult or child with disabilities understand the related anxiety. Caregivers naturally worry about their child’s well-being if they cannot provide at the same level forever. Starting a special needs trust gives them more peace of mind. They know the beneficiary will remain financially secure and continue getting government benefits if something happens to them.
Why People Contact Ettinger Law Firm for Special Needs Trusts
Ettinger Law Firm has many practice areas, including special needs trusts. The firm is the largest elder care and trust or estate planning law firm in New York, given its 12 locations. Clients enjoy the firm’s low-key approach to asset protection. Lawyers consult people in need and give them plenty of time to make the right decision.
The lawyers working with Ettinger Law Firm also do not take retainers. Clients do not have to pay until they sign an agreement for their desired legal service. They can call or email for free legal reviews and consultations until they know their next step. Ettinger Law Firm protects clients’ homes, families and futures with reassuring services and a laid-back approach to legal advice.
Steps to Start a Special Needs Trust
If starting a special needs trust sounds appealing, interested caregivers can contact attorneys like those at Ettinger Law Firm. They will guide clients through essential steps such as:
- Deciding which kind of special needs trust best suits the intended beneficiary.
- How the child will use the funds when they get access.
- Who is allowed to make decisions about the trust.
The steps depend on where each client lives and the firm they contact. Starting the process will bring more peace of mind, especially when caregivers work with experienced attorneys who help people create special needs trusts regularly.
Safeguard the Future With a Trust
Parents and grandparents do not have to wait until retirement to start a special needs trust for their child. Caregivers can contact Ettinger Law Firm to establish the financial protection their loved one requires. They will rest assured that their child will continue receiving the care and benefits they need, no matter what the future holds.
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