Thursday, March 31, 2011 Parents of Disabled Kids Discover the Importance of Houston Special Needs Planning
By: Kim Hegwood, Houston Special Needs Planning Attorney
Estate planning is incredibly important for all parents, as it allows them the opportunity to make very difficult choices. It provides the chance to determine who will raise your minor children if you can’t, what money will be set aside or used for their upbringing, and even what money will be used to support them as adults. Each of these choices can become even more difficult when the child has disabilities, especially if he or she is receiving some type of government assistance. This is where working with a Houston special needs planning attorney comes into play.
A special needs planning attorney is familiar with the most common choices faced by parents of children with disabilities and can offer advice and suggestions on how to plan for that child’s care. They also understand the ramifications of inheritance when it comes to eligibility for government assistance. Here in Houston, as in other places across the country, planning tools such as a “special needs” or supplemental needs trust must be set up a very particular way in order to meet government standards and allow for the continuation of other benefits.
However, special needs planning is not just about maintaining government support. It also protects the disabled individual from lawsuits and other debts, as the trust cannot be seized in order to pay these. This protects the trust and the individual who relies upon it for his or her ongoing care.
A Houston special needs planning attorney will be familiar with how local, state, and federal laws interact in order for parents to put together a plan that best protects their child. It is highly recommended that you seek out a lawyer who specializes in special needs trust planning. He or she will help set up your child’s trust, as well as explain all the details such as how a trustee will manage the assets for the beneficiary.
If you are ready to get started in creating a plan that makes sure your disabled child stays physically and financially protected if something happens to you, I invite you to give our office a call at (281) 218-0880 and schedule a Lifetime Legacy Session. These sessions are normally $750, but we’ve made space for 10 area families to come in this month absolutely free of charge. Simply call (281) 218-0880 to reserve your free planning session today. Tuesday, December 28, 2010 Houston Special Needs Attorney Answers, “What is a Special Needs Trust”
By: Kim Hegwood, Houston special needs attorney
As a Houston special needs attorney, I’m often asked, “What exactly is a Special Needs Trust?”
For starters, a special needs trust is legal entity created to hold assets of a person with a mental or physical disability. The trust names a trustee whose job is to manage the assets and distribute them according to the provisions of the trust. There are specific limitations on the way assets can be distributed so that they do not disqualify the beneficiary from eligibility for government programs.
There are two primary types of special needs trusts. They are:
Self Settled Special Needs Trusts
In a self settled special needs trust the assets in the trust belong to the beneficiary. For example, if the person becomes disabled due to negligence of a doctor or car accident, it is possible that the beneficiary received a settlement as a result of litigation. In this case, a self settled special needs trust would be created for the beneficiary to receive and hold the settlement funds in order to preserve government benefits.
Third Party Special Needs Trusts
A third party special needs trust is created by a third party with assets that belong to the third party. For example, the parents of a child born with Down syndrome or autism might create a special needs trust for their child as a part of their overall estate plan. In the case of a third part special needs trust, family members may make lifetime gifts to the child.
Distributions for Special Needs Trusts
In order to preserve government benefits it is important to direct the trustee not to pay for services that are provided by a government agency. If done correctly, the assets in the special needs trust will not be counted as a resource. The trust must authorize distributions only for special or supplemental needs. Some examples of this might include dental care, specialized therapy, and services of a care giver. Improper distributions of a special needs trust can cause a loss in government services, so it is critical that the trust be set up and then managed properly.
Who Should Create a Special Needs Trust?
Not all Houston special needs trust attorneys have the training, expertise or knowledge to create a special needs trust. You should consult with an attorney who is experienced in creating these trusts and who knows how to properly advise trustees. |