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Practice Areas
Wills, Estates, Trusts, Corporate, Tax
SPECIAL NEEDS TRUSTS
There are three types of Special Needs Trusts.
- Payback Trusts
- Pooled Trusts
- Common Law Trusts
For an overview of Payback Trusts and Pooled Trusts in Pennsylvania, please visit the ACHIEVA website: http://www.achieva.info/ourservices.php
A Common Law Special Needs Trust is also known as a Supplemental Needs Trust. This type of Trust is an excellent estate planning tool if a child or grandchild has special needs. Like a Testamentary Trust, the Special Needs Trust is a part of your Last Will and Testament.
The following are some frequently asked questions regarding Common Law Special Needs Trusts:
What is a Special Needs Trust?
In general, a Special Needs Trust is created by a parent or other family member for a child with special needs to pay for comforts and luxuries other than basic support. The Trust can be set up by a parent or other family member while he or she is still alive (a Living Trust) or it can be set up in a Will as a way to leave assets to a disabled child or loved one upon the death of the parent or family member.
Why does my loved one need a Special Needs Trust?
If your special needs child is receiving government benefits such as Supplemental Social Security (SSI) or Medicaid, and if you leave funds or property to that child, you could jeopardize your child’s ability to receive those government benefits or the government could recover all of the benefits it already paid.
Who manages the Trust?
The trust is managed by a trustee selected by you, who will have absolute discretion over the trust property and will determine how the money will be spent for the benefit of your special needs child.
How can the Trust funds be used?
The trust funds can be used to pay for many things, so long as they are not used to duplicate government benefits, including training and education, medical and dental expenses, medical equipment, transportation, recreation, etc.
Should I consult an attorney to help me set up a Special Needs Trust?
The government has imposed some very stringent rules and regulations on Special Needs Trusts. It is critical that the trust be carefully drafted to assure that the trust does not jeopardize your child’s right to government benefits.
How can Roger Wise LLC help me?
Attorney Roger Wise has experience in helping clients with Special Needs Trusts, Wills, Testamentary and Living Trusts, Living Wills and Powers of Attorney. He can help you navigate the government rules and regulations so that the supplemental needs of your child or grandchild are fulfilled without jeopardizing or forfeiting the governmental benefits to which your loved one is entitled.