281-771-0560Special Needs Planning Attorneys in Houston, TX
Helping Families Support Their Most Vulnerable Loved Ones
Estate planning is imperative for passing your wealth to your loved ones after you pass away. Most people rely on a will to outline their assets and instruct how they would like their estate passed on to their family, but did you know an unplanned inheritance could actually cause more harm than good for people who rely on public benefits?
Getting approved for Supplemental Security Income (SSI) and Medicaid is already a difficult, lengthy task. Recipients of these benefits must earn below a certain amount to qualify for their life-saving benefits. A sudden inheritance could see them exceeding that limit and losing their benefits. You don’t want that.
There are options available to you in the form of special needs trusts. These complex legal entities require a deep understanding of the laws and regulations that govern these types of trusts. You need the help of a special needs trust attorney from The Hatchett Law Firm. Find out more about special needs trusts and other estate planning services by contacting us.
Call us at (281) 771-0560 to speak with a member of our team, the first step towards building a comprehensive estate plan.
What is a Special Needs Trust?
A special needs trust is a type of trust that exists for the sole purpose of caring for a special needs loved one, and has the extra benefit of avoiding the risk of losing their eligibility for government benefits. The income limit to receive government benefits is incredibly low. A sudden influx of assets could be enough to lose eligibility for these benefits by exceeding the maximum income limit.
A special needs trust allows you to create an irrevocable trust and fund it with assets. The trustee will manage the trust and payments to the beneficiary. With proper management, these funds can truly enrich the life of the recipient without the risk of losing access to vital benefits.
Special needs trusts require strict compliance with the laws and regulations that govern them. If the trust is abused or mismanaged, your loved one may lose their assistance. That’s why you need The Hatchett Law Firm. We can help you create trust and help you understand the inner workings of these valuable estate planning tools.
What Types of Special Needs Trusts Are There?
There are a few different types of special needs trusts, and each has its own purpose and limitations.
First-Party Special Needs Trust
This trust is funded with the beneficiary’s own assets. Things like an inheritance, life insurance payout, or personal injury settlement can be used to fund the trust. This type of trust requires Medicaid to be repaid with assets from the trust after the beneficiary passes away.
Third-Party Special Needs Trust
This trust is often created by parents and relatives who fund it. The primary benefit of a third-party special needs trust is that it does not require a Medicaid repayment when the recipient passes away.
Pooled Special Needs Trust
This type of trust is managed by a non-profit organization with a “pool” of assets from a few individuals. The organization combines the assets of multiple beneficiaries while maintaining separate accounts. The organization usually keeps the remaining assets when a beneficiary passes away.
Do You Need a Houston Estate Planning Attorney?
If you have a family member with special needs, you are likely aware of the help that government benefits can provide them, even if it is not enough. It was to prepare an estate plan that includes a special needs trust so that your loved one may continue receiving government benefits without disruption, and also receive the benefit of the inheritance from you.
At The Hatchett Law Firm, our estate planning attorneys can help you create a special needs trust and give you a deeper understanding of its legal management and what the funds can be used for without risking eligibility for government assistance.
Contact us at (281) 771-0560 to speak with a member of our team and find out how we can help you with special needs trusts and other important estate planning tasks.