Special Needs Trusts: Providing For A Disabled Loved One

In this article, you can discover…

• The purpose of a special needs trust.
• Key benefits of establishing a special needs trust.
• The common mistakes to avoid with a special needs trust.

What Is A Special Needs Trust?

A special needs trust helps provide for a disabled adult in ways that take into consideration government benefits and the wishes or needs of the disabled person.

If a large amount of money is left to a disabled person, their government benefits may be cut off in light of this inheritance. They would then have to use up the inheritance before they could receive benefits again.

However, a special needs trust helps allocate that inherited money to non-essential things, such as vacations, haircuts, and entertainment. This allows the basic necessities of life such as housing, food, and clothing to be provided by government benefits, retaining those monthly benefits for basic care.

How Do You Set Up A Special Needs Trust In Colorado?

Speak with a seasoned estate planning attorney. They can discuss the needs and situation of your special needs family member with you and help you draft a trust that takes their long-term care into consideration.

What Are The Key Benefits Of A Special Needs Trust?

Special needs trusts allow for a disabled adult’s care to be carefully planned ahead of time. Money can be allocated in a way that holds on to government benefits, and trusts can be drafted with the person’s maximum comfort, security, and quality of medical care in mind.

What Are The Downsides Of A Special Needs Trust?

Special needs trusts don’t generally allow for the disabled adult to receive a large amount of money for personal use all at once, even if they wanted this. Rather it helps to allocate smaller amounts for non-essential care in order to hold on to government benefits without interruption.

Attorney Donald Janklow is an accomplished estate attorney serving Colorado. For over 50 years, he’s helped families care for special needs loved ones with diligence, careful planning, and attention to detail.

Have questions about special needs trusts? Reach out to Donald Janklow Attorney At Law at (970) 353-4000 for an initial consultation today.

What Are The Common Mistakes To Avoid With Special Needs Trusts?

Choosing the wrong trustee is a huge mistake that you’ll want to avoid. A trustee who is not trustworthy, not honest, or not good with money can truly take advantage of a disabled person or else terribly mismanage a trust. Be sure the trustee you choose is principled, good at budgeting, and truly cares about the special needs adult.

You’ll also want to avoid crafting a trust that accidentally disqualifies the special needs person from receiving government benefits. An estate planning attorney can review your loved one’s situation and help you draft careful documents that protect your loved one and their interests in the long run.

Case Studies From The Field

One incident has always stood in my mind and taught me how incredibly important it is to choose a guardian or a trustee very carefully.

When I was the lawyer for the students at the University of Northern Colorado, I remember a young couple with a child who came to me for legal guidance. I asked them who they would like to establish as a guardian for their small child should something happen to them.

I was surprised to hear them adamantly insist they didn’t want either of their parents caring for the child. This is why it’s so important to name guardians.

Without estate plans in place, that child would have likely been entrusted to his grandparents. And if the grandparents are abusive, negligent, or otherwise unfit, you wouldn’t want the state to place your child with them permanently.

That was something that I learned and heard early on. I think that’s probably one of the most important things that I learned.

Still Have Questions? Ready To Get Started?

For more information on Special Needs Trusts, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (970) 353-4000 today.