Chandler Special Needs Trusts Attorneys
Proudly Serving Clients and Their Families in Arizona
If you have a special needs child or an adult family member with special needs, you may be feeling overwhelmed considering the different estate planning options you have that could benefit your loved ones. Many parents expressed concern about how their special needs child will receive adequate and lifelong care after they are gone. Others worry about how to leave financial assets to a disabled person without interfering with or disqualifying their eligibility for government programs. And how can you make sure that your special needs loved one is being looked after by people who have their best interests at heart? All of these moral, financial, and personal quandaries could potentially be solved by proper planning and a special needs trust.
Special needs trusts are legal instruments designed to preserve financial security and access to public benefit programs for individuals with mental or physical disabilities. A special needs trust sets aside funding and resources for disabled beneficiaries without affecting their eligibility for needs-based government benefits such as Supplemental Security Income (SSI) and Medicaid. There are certain requirements and strict rules on eligibility for special needs trust. In order to ensure that your special needs planning complies with Arizona law, it is highly recommended that you work with experienced estate planning attorneys to determine your beneficiary’s eligibility for a special needs trust.
Metropolitan Law Group is a Chandler-based law firm dedicated to helping families with complex estate planning needs, including special needs planning and special needs trusts. An estate planning lawyer at our law office can help ensure that your family member with special needs is properly cared for financially, medically, ethically, and with proper oversight, with the creation of a special needs trust.
To learn more about our legal services and how we can help ensure your loved one receives the financial support they require via a special needs trust, please get in touch with our Chandler law offices to schedule your free, no-obligation case evaluation today.
How Does an Arizona Special Needs Trust Work?
Unlike a regular living trust, special needs trusts (sometimes referred to as supplemental needs trusts) are designed specifically for disabled individuals so that they can receive supplemental funding while still maintaining eligibility for public benefits. Assets placed into a special needs trust are to be used to benefit the beneficiary and improve their quality of life. Because the funds that are held in the trust are not held by the individual, the trust assets are not adversely impacted by needs-based government services or benefits.
You might think that leaving behind a financial gift and a last will and testament would help your disabled loved one. However, these additional funds could potentially disqualify them from government aid. SSI, Medicaid, and other government programs are needs-based, meaning that they are given to those with low income or few assets. Any inheritance could be counted against the beneficiary’s eligibility.
Special needs trusts are customizable to reflect the unique and additional needs of every beneficiary. Funds can be allocated for specific uses such as education, medical care, service animals, or entertainment.
To learn more about the many benefits of special needs trusts, contact our law firm for legal guidance.
Who Qualifies for Arizona Special Needs Trusts?
The intended final beneficiary must meet Arizona’s basic requirements for special needs trusts to qualify for one.
These include:
- Already receiving needs-based government benefits.
- Diagnosed with a physical, mental, or developmental disability.
- Require financial support for ongoing care and additional needs.
What Are the Different Types of Special Needs Trusts in Chandler, AZ?
Every special needs trust is uniquely tailored to the individual it is meant to serve. However, certain types of special needs trusts exist in Arizona, such as first-party trusts, third-party trusts, and pooled special needs trusts.
A first-party special needs trust, also known simply as a first-party trust, is established using the beneficiary’s assets. This type of trust is designed to protect the beneficiary’s eligibility for government programs while still supplying supplemental items for additional needs. First-party trusts must be created by a family member or guardian and funded by the disabled person’s assets.
A third-party trust can be created by anyone as part of an estate plan and is not strictly restricted to family members. The assets put into a third-party trust are owned by the trust creator (the grantor). The assets put into a third-party special needs trust were never owned by the beneficiary, which means that they are exempt from the requirements of first-party trusts.
A pooled special needs trust combines resources for the benefit of multiple disabled beneficiaries. This type of trust is managed by a nonprofit organization, separating trust assets into individual accounts while collectively investing for the beneficiary’s benefit.
How Are Special Needs Trusts Used?
The assets in a special needs trust must be used for specific purposes that do not disqualify the beneficiary from public benefits eligibility.
Trustees can spend trust assets on the following types of expenses:
- Clothing and other personal care.
- Education, school tuition, and books.
- Entertainment expenses, so long as they are deemed appropriate.
- Furnishings and other essentials for the home.
- Guardianship costs.
- Home maintenance and repair.
- Internet and phone.
- Managing care expenses.
- Medical care not covered by public benefits.
- Prepared funeral, burial, and memorial plans.
- Social activities.
- Supplemental caregiver expenses.
- Transportation.
- Travel and recreation.
- Trust administration expenses.
- Vocational training.
What Happens if You Leave Your Special Needs Family Member Out of Your Estate Plan?
Many parents feel they have no better legal option other than to omit their special needs children from their estate plans, simply hoping that other designated beneficiaries will do the right thing and provide adequate care to their special needs family member. But this is a risk. Not only might other beneficiaries not be willing to do what is necessary to help the special needs individual, but they may lack the funds to help.
The only way to be sure that your disabled loved one receives the proper medical care, financial security, and additional resources they need to have a better quality of life is to establish a special needs trust.
Schedule a Free Consultation with an Experienced Special Needs Trust Attorney in Chandler, AZ, Today
A special needs trust can be a critical component of a comprehensive estate plan if you have a family member who is disabled in some way. You must plan for the future of your disabled beneficiaries with proper special needs planning.
Contact our special needs trust lawyers in Chandler, AZ, to discuss your goals in estate planning today. You may reach us at 480-405-1970.