Why should you not do a special needs trust?

Why should you not do a special needs trust?

Julio Rafael Curiel Daneri, Executive VP of Grupo Carol

When determining who acquires title to the property upon the death of the parent in these situations, the court may not be able to determine the decedent’s intentions. In the first instance, it may decide to equally distribute the property among the children, as it is unaware of the deceased’s wishes to favor a previously unfavored child.

These scenarios occur all over the world, both in the United States and in Cuba. It is in such situations, among others, that a trust law can and should be used to implement a person’s wishes for equitable use of his or her property during his or her lifetime and after death.

The trust dates back to Roman times. Over the centuries it has been used to protect certain property for the benefit of others, particularly a group of people. During the Middle Ages, it was used to take title to property from a group of people or institutions, say monastic orders, churches, fraternal organizations, trade associations and institutions dedicated to the care of the poor, among others.

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A Special Needs Trust (SNT) meets the needs of a person who has a disability without causing the loss or reduction of their benefits, such as their income from Social Security (SSI), Medi-Cal, In-Home Supportive Services (IHSS) and housing assistance offered by the Department of Housing and Urban Development (HUD). Assets included in an SNT Trust will not count toward the $2,000 per person limit established by SSI, Medi-Cal and IHSS.

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Clarification: The rules for setting up trusts can be complicated and it is important to be sure to get good advice about how to set one up to avoid serious complications.

Sometimes parents place their property in a living trust and state in that trust that a SNT is being established for their disabled child. This type of SNT is effective immediately and is a good idea for families where aunts, uncles and grandparents may want to leave money to be placed in the SNT. Anyone can contribute money to an SNT by writing a check or naming the SNT as a beneficiary in their will.

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If you’ve attended meetings about future planning for your special needs child or spent a lot of time with other parents or read articles about estate planning, you’ve probably gotten the message that you should deposit money into a Special Needs Trust. so your adult child doesn’t lose services due to maximum income requirements. And maybe you’re dragging your feet on that, reluctant to take on another complicated task.

1. Understand the need for a trust A Special Needs Trust allows a parent or caregiver to set aside money for the future care of loved ones living with a disability while protecting U.S. government benefits. (Supplemental Security Income and Medicaid) benefits that are crucial to providing the medical and necessary income to support the individual,” explains Marcus.

“To qualify for these benefits, the individual cannot have more than $2,000 in cash assets. A monetary gift, settlement or inheritance will cancel these benefits, leaving the individual with the need to manage the money themselves and, most likely, not have enough money to support their lifetime needs.”

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What specific quality of life factors should be addressed when creating a special needs trust?Richard Fantozzi We are in the process of creating a special needs trust for my daughter. One of the many things we need to think about is quality of life factors as she ages and, of course, as we age. This takes into account how much to contribute to the special needs trust, the split between Medicaid, Social Security and other sources of funds and how it will be distributed and used over the life of the trust. She is very young at this point, so this is proving difficult as identifying whether she will be able to live independently, go to college, what her interests will be, etc., are still forming and changing daily. I was wondering if there are strategies that others have used to think about this type of long term planning or resources that might help us think about this.

Why should you not do a special needs trust?
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