As our population’s average life expectancy continues to grow, and the elderly and disabled live longer than ever before, lawyers are forced to defend them properly. To some extent, the government provides financial assistance through Medicaid and Supplemental Security Income (SSI), but it is not adequate to meet all the recipient’s needs. In addition to and in combination with its government incentives, the use of a Special Needs Trust (SNT) is an excellent way to care for and protect the elderly and disabled. If you’re looking for more tips, Special Needs Trust Attorney Logan has it for you.
The attorney usually attempts to draught an SNT that would not limit the beneficiary of government services to an ineligibility period or reduce the benefits offered by the programmes. However, under certain cases, as long as basic aspects of the benefits are not eliminated, the amount of government benefits for the recipient would be decreased. An SSI beneficiary, for example, can suffer decreased monthly SSI benefits but receive full Medicaid coverage, which is a higher financial aid, for medical needs. To ensure the continuing SSI/Medicaid eligibility of a disabled or elderly person, all SNTs must adhere to appropriate legislative and regulatory criteria.
The Special Needs Trust may be an inter-vivos or testamentary trust fund, and a third party may either be self-settled or established. The form of trust depends on what money the trust funds and the recipient’s age and circumstances.
Basically three forms of SNTs exist. One is a trust established by a third party for a public benefit recipient. Another is a trust established by a third party for a beneficiary of public benefits, in which the third party often seeks public benefits for him or herself. The last is a first party created for one’s own benefit, or self-settled trust.
The donor wishes to donate or bequeath assets to another individual without jeopardising the individual’s eligibility for public benefits in the SNT generated by a third party for another who is already receiving public benefits. This trust is most widely used in practise when a parent creates a trust for a disabled child and when a spouse of a Medicaid recipient or future Medicaid recipient legates some or all of their estate to their spouse in trust.
The next SNT form adds a twist to the one above. The donor wishes to donate or bequeath assets to a disabled child or person under the age of 65 in this trust and the donor also wishes to gain Medicaid eligibility for him or herself.
Finally, an SNT can be created for its own benefit by a disabled person trying to save their own funds. In connection with a litigation recovery, this trust is usually used to protect the properties of the injured party for potential needs. Due to the required correlation between confidence criteria and public benefit programme regulations, establishing and administering this self-settled trust is extremely challenging. Regarding self-settled trusts, the programme guidelines are frequently contradictory and vague and the counsel must analyse the nuances of each programme in order to draw up a self-settled trust that will not jeopardise the many public benefits to which the donor/recipient might be entitled and will meet statutory and regulatory criteria for trust.
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Amicus Law Firm
95 W 100 S #382, Logan, Utah 84321
Phone Number : (435) 915-4454