Special Needs Trust Attorney

What is a third-party special needs trust?

Before understanding what a third-party needs trust is, it’s essential to know the types of Trusts associated with special needs. We’ll go over the types of Trust below designed to manage the resources of a person with special needs.

 

third-party special needs trust

Before understanding what a third-party needs trust is, it’s essential to know the types of Trusts associated with special needs. We’ll go over the types of special needs trust below designed to manage the resources of a person with special needs.

Types of Special Needs Trusts (Irrevocable Trust)

  1. Third-party Special Needs Trust
  2. First-party Special Needs Trust
  3. Pooled Trusts

What are the advantages of the Third-party special needs trust?

  1. Funded with assets that never belonged to the trust beneficiary
  2. Set up by a donor: rarely requires oversight from the courts, especially if the Trust’s donor is alive
  3. Life Insurance Policies can be utilized.
  4. Can own real estate
  5. Can own investments
  6. Can receive benefits from retirement accounts (recommend to speak to an estate planning attorney of the complexities)
  7. No limit to the size of the trust fund
  8. At the beneficiary’s passing, the third-party special needs trust can pass to the donor’s family and other options.

1st Note: The funds of the Trust never belong to the beneficiary; therefore, the government is not entitled to reimbursements for Medicaid payments. (The Trust must be drafted appropriately)

2nd Note: No age limit for third-party trusts, unlike the first-party Trust. 

3rd Note: Especially when the donor is living, third-party trusts usually generate income tax for the donor and not the beneficiary. To not create income tax is advantageous for the beneficiary so as not to influence Medicare. (speak with an estate planning attorney to keep up-to-date, as tax topics change periodically.

About Hess-Verdon & Associates PLC

We hope the above breakdown has helped you. But, before taking your next step, our courteous and helpful Trust Attorneys are a phone call away. 

Hess-Verdon is in Newport Beach, CA. 

Hess-Verdon is your choice for all your Special Needs Trust questions.

Call (888) 318-4430

We will make sure the Trust is created using the language necessary to make it valid. We will also make sure it’s broad enough to meet the evolving needs of the disabled beneficiary.

Other Topics we will cover: Spend down plan, Settlement protection trust, Pooled trust, ABLE account.

 

 

 

Jilly Hess Verdon Guide to Third-Party Special Needs Trust and Advantages!

JIllyn Hess-Verdon

Managing Partner

 

NEED A SECOND OPINION?

Hess-Verdon is ready to help you today.

Get Answers and Guidance

Hess-Verdon & Associates
A PROFESSIONAL LAW CORPORATION
1-888-318-4430

“Third Party Special Needs Trust”

Benefits of third-party special needs trust.

Fund in the trust never belongs to the beneficiary, therefore the government is not entitled to reimbursement for Medicaid payments upon death. 

Call us to learn more about third-party special needs trust.

What are some special needs topics I should know?

Things to consider are the following:

  1. Assets in the beneficiary name. (Current limit is $2,000.00) 
  2. Financial planning
  3. Special Needs Trust
  4. SSI (Supplemental Security Income) and SSDI (Social Security Disability Income)
  5. Settlement Planning
  6. Public Benefits
  7. Health Care
  8. Estate Planning
  9. Disability Issues

What other alternative is there to Special Needs Trusts?  

  1. Achieving a Better Life Experience ACT (ABLE). Go here –>IRS ABLE Accounts of 2014
  2. Passed in 2014 to allow for special bank accounts for individuals with a disability

What are the two most common types of special needs trusts? (First-party and 3rd-party)

First-Party funds – (d)(4)(A) trust (referring to its authorizing statute) (i.e., trusts that are funded directly by the person with a disability, which may be subject to Medicaid payback rules) and third-party funds (i.e., trusts that are supported by parents, grandparents, guardians or other funding sources that are likely, not subject to Medicaid payback rules)

  1. What are some qualifications for a first-party trust?
  1. The disabled beneficiary must be under the age of 65 and disabled
  2. The trust must be created by a parent, grandparent, guardian, or the court.
  3. When creating the SNT, the State in which the beneficiary lives must be designated as the primary beneficiary of the trust.
  4. And the assets in the SNT must be only used for the Medicaid beneficiary.

Take Note: Both first-party and third-party SNTs must be drafted correctly to protect the disabled beneficiary’s right to receive means-tested public benefits.

2nd note: The tax consequences of SNTs are also very complex.

3rd note: Some States require that an annual budget be established.

4th note: If you don’t follow State rules, and they may change periodically, you will disqualify the trust and disqualify the beneficiary from Medicaid.

 5th note: Pool trust. Also known as (d)(4)(C) Trust. A pooled trust established by a non-profit organization that combines assets from many people. (contact us for details)

You found the right team. See our Successful Reviews!

Hess-Verdon & Associates will Guide You through the Special Needs Trust Process!

How does the beneficiary access the special needs trust?

    1. The Trustee can purchase necessities for the loved one, services like personal care, vacations, home furnishings (see above partial list). The Trustee could disqualify the beneficiary by directly giving the cherished one money, etc..

    We hope the above breakdown has helped you. But, before taking your next step, our courteous and helpful Trust Attorneys are a phone call away. 

    Hess-Verdon is in Newport Beach, CA. 

    Hess-Verdon is your choice for all your Special Needs Trust questions.

    Call (888) 318-4430

    We will make sure the trust is created using the language necessary to make it valid. We will also make sure it’s broad enough to meet the evolving needs of the disabled beneficiary.

    Other Topics we will cover: Spend down plan, Settlement protection trust, Pooled trust, ABLE account.

    Hess-Verdon Team of attorneys

    See our Successful Reviews!

    stars 5 Guide to Third-Party Special Needs Trust and Advantages!

    “I have been working with this firm since 1994; you can’t beat a firm like this, that is so ethical and competent.”

    Dixie Fisher

    Client Since 1994

    stars 5 Guide to Third-Party Special Needs Trust and Advantages!

    “We’ve always felt comfortable sharing our concerns with Hess-Verdon & Associates and have felt confident that the job was well done and the concerns answered.”

    Malou Cole

    Client Since 2006

    stars 5 Guide to Third-Party Special Needs Trust and Advantages!

    Truly exceptional law firm! They provided concise, decisive legal assistance during unanticipated events during estate proceedings. They made a bad situation better. Our family will always be grateful. There is no one I would rather have than Hess-Verdon & Associates representing my family.

    Wade Shannon

    Client Since 2014

    stars 5 Guide to Third-Party Special Needs Trust and Advantages!

    “Outstanding expertise and client support”

    Suzanne Casey

    Client Since 2018

    stars 5 Guide to Third-Party Special Needs Trust and Advantages!

    “Hess-Verdon is very professional and knowledgeable on corporate law, that can help with estate planning matters.”

    Roy Trachsel

    Client Since 1995

    stars 5 Guide to Third-Party Special Needs Trust and Advantages!

    “Absolutely top notch firm for handling all your estate planning matters.”

    Dean Williams

    Client Since 1995

    stars 5 Guide to Third-Party Special Needs Trust and Advantages!

    “Definitely a firm that will “fight to the finish.”

    Frances Gruben

    Client Since 2010

    stars 5 Guide to Third-Party Special Needs Trust and Advantages!

    “I have been working with this firm since 1994; you can’t beat a firm like this, that is so ethical and competent.”

    Dixie Fisher

    Client Since 1994

    Hess-Verdon & Associates PLC

    Call 1-888-318-4430 or Contact Us Below

    After filling out the form, we will receive it immediately. 

    Simply fill out the information below and our paralegals will have you speak with our attorneys. Start today and have peace of mind.