Special Needs Trust

[Jaxkats]

What is the name of your state (only U.S. law)? Florida. Isn't it better to set up a Special Needs Trust for your adult child on SSI while you are alive instead of providing for it to be set up upon your death? I ask, because if others (like a grandparent, or ex husband,etc) are wanting to leave funds etc., to the SSI recipient and set up in their Wills also that a Special Needs Trust for the SSI recipient be set up upon their death -- couldn't you then end up with 2, or 3 or 4 Special Needs Trusts being set up? Some of them not geographically located to where the ultimate Trustee lives? If you set it up while you're alive -- wouldn't that be better -- as others could then designatie that particular Special Needs Trust for whatever they want to leave for the SSI participant upon their death and then everything would be in one Trust and in one location? Thanks for any advice.

 

[Onderzoek]

Sounds like a good idea but you need a lot more advice than you can get on this FreeAdvice forum from strangers.

Get a lawyer with a specialty in Medicaid and estate planning.

 

[tranquility]

Since you know the trust will be needed, setting it up early is better. The way you gift to it and look back periods and many matters can be more easily managed. You might have a pourover will and a living trust which give additional funds on death to complete the plan.

But, I agree with Onderzoek, you need an attorney to set things up. Special needs trusts are complex and the law is always in motion. You need expert advice to create a plan which best utilizes all resources.

 

[Lydarose]

You definitely will need an attorney to set this up. A Special Needs Trust was set up for my disabled sister by my mother, with me as the trustee.

The Trust was named as the beneficiary of my mother's life insurance policy in the case of her death. When it was first set up, a Federal Tax Identification Number was obtained and a bank account with $100.00 was opened.

When my mother passed away almost a year later, the insurance policy was directly paid to the trust, so I would assume that the trust would need to be named in the will as a beneficiary. It has worked out well, thus far. It does take a little work since there is a bit of bookkeeping and each year a tax return must be filed for the trust. I have had to hire a tax professional each year, since it is a bit beyond me. Hope this helps.

Wishing you well.

 

[Jaxkats]

Thank you so much Lydarose - your info was very helpful. I know that a lawyer is needed to set up the Trust and will go that route. I have a list of some questions when I go to the Lawyer and I want to have as much personal info and knowledge as possible when I go. The question I posted here was one that I was looking to get some firsthand, "actually done it" information - so your actual experience was so valuable. Thank you again

 

[Hurtin4Certain]

special needs

Definitely! I am in the middle of setting one up for my roomate who is on SSI. For more info check out this website: The Special Needs Alliance - Special Needs. Special Attorneys - Helping Individuals with Disabilities, Their Families, and the Professionals who Represent Them