Special Needs Trust Explained by Idaho Lawyer

Special Needs Trust Explained by Idaho Lawyer

A standard Living Trust or Family Trust is useful to manage a child’s inheritance until that child is old enough and mature enough to receive the inheritance here in Boise, Meridian, and Eagle.

But what happens when the heir has physical or mental disabilities that would entitle him to receive state or federal benefits?  In that case, the use of standard trust provisions will enable the government to trim or even eliminate the benefits that would otherwise be provided for that heir.

To avoid this cutback, many parents in Idaho choose to use a Special Needs Trust.  Or they can add Special Needs provisions to a standard Living Trust.  Doing so allows assets to be available to supplement the governmental benefits in terms of taking care of the needs of that child.  And it does so without enabling the government to cut back on the benefits provided to (or for the benefit of) that child.

So how does a Special Needs Trust differ from a standard Living Trust?  Really there is just one difference.  The trustee of the trust is given absolute and ongoing authority in deciding whether or not to actually use trust assets to take care of the needs of the disabled child.

The Living Trust set up by the parents will make it clear that the trust is established to provide for the support, care, maintenance, and education of the child.  But then the trustee will expressly be given absolute discretion to decide which of the needs of the child will be paid for out of the trust.

The trustee will, of course, follow the instructions of the parents and use the trust assets to take care of the child as he or she grows up.  But the mere existence of the trustee’s discretion will ensure that the child’s government benefits will not be trimmed due to the existence of the trust.  The trust effectively becomes a supplemental source from which the parents can maximize the resources available for the care of their disabled child.

Typically, when the disabled child passes away, any assets remaining in the Special Needs Trust will be distributed to other heirs designated by the parents when they set up the trust.  That can include surviving siblings of the deceased child, charities, or other family members or friends.

As your attorney or lawyer, Barry Peters can make certain that these types of Special Needs provisions are built into an otherwise standard Living Trust or Family Trust, or they can be included in a separate free-standing trust.

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Whether you live in Boise, Meridian, Eagle, Star, Nampa, or other nearby communities – in fact, anywhere in Ada County or Canyon County – for additional easy-to-understand information on Wills, Trusts, probate, and estate taxes, visit the user-friendly website at BarryPeters-Law.com.  Then call attorney Barry Peters’ offices at (208) 939-2600 for an expedited appointment to begin the process of setting up your own Living Trust.  Or, if you have questions, please call Barry for a free telephone consultation or visit his Q & A pages at BarryPeters-Law.com/common-questions .  As always, your total satisfaction is guaranteed by Barry Peters, Attorney at Law, where all clients receive individual attention to the details of their unique circumstances.