Special Needs Trust

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Special Needs Trust
Children with special needs, or who developed
special needs or disabilities after birth due to
an accident or injury, typically need someone to
handle their financial affairs. If this is your
circumstance, you have specific considerations
when it comes to your estate planning needs.
Parents of special needs children need to ensure
that their children will be taken care of
properly. A Special Needs Trust (SNT) provides
parents this comfort. As with any type of estate
planning documents, there are some advantages and
disadvantages to an SNT.
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Advantages SNTs are usually created for children
who are unable to live independently for the rest
of their life or handle their own finances.
There are several advantages to this type of
trust including

• Children will remain eligible for financial
  assistance from SSI or Medicaid, and the SNT
  helps fund any care that is required above and
  beyond what is provided through these government
  services.
• Funds from an SNT are used to take care of the
  child with a disability. This helps ensure that a
  child is not taken advantage of by a person
  looking to manipulate your child for financial
  gain.
• The funds from an SNT are tax-deductible. over
  what the government will provide. The funds will
  be deductible from taxes.
• These funds in an SNT are only available for the
  care of your child and never used to pay any
  judgments regarding your creditors.

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Disadvantages
Some of the disadvantages or challenges with the
creation of an SNT include the following
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• The costs to create an SNT are higher and
  include a fee to establish as well as an annual
  fee. Additionally, there are specific minimum
  threshold amounts needed to start an SNT. These
  fees may make an SNT cost- prohibitive for
  certain families.
• Your child will have to ask for any necessary
  funds from the trustee who oversees the SNT. This
  trustee will have complete discretionary control
  over the funds in the SNT. While this may
  frustrate some children, the benefit is that
  their financial security will be established for
  the rest of their lives.
• Medicaid must be repaid in the exact amount that
  Medicaid is paid out on the childs behalf.
  Unfortunately, this may completely wipe out the
  SNT after the childs death or when the trust is
  legally terminated.

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Contact an Estate Planning Attorney
If you have a special needs child, you have many
different considerations regarding your estate
planning needs. Contact an experienced estate
planning attorney at the law firm of Giro Law at
201-690-1642 to help you understand the best
options for your unique situation.