You might be asking what exactly is a special trust for people with special needs, and how does it work in Ocean County? What are the benefits of setting up such a trust? Are there any real reasons why I need to employ an attorney to set up such a trust? In this post, we'll discuss the advantages of having a Special Needs Trust and how to locate a great lawyer for the area of Ocean County.
To provide for the needs of a child or loved one in the event you die, a special-needs trust can be established. Trusts for special needs are typically administered by an attorney or professional trustee. A Memorandum of Intent must be prepared that describes the care plan and who will benefit from any life insurance policy. A special trust for those with special needs is a vital part of an estate plan for your loved ones or children.
A Special Needs Trust can be an estate planning instrument that a parent may set up for their disabled child. These trusts are funded with assets from a parent's estate. The child or loved ones with special needs may be eligible to receive government benefits through Medicaid or Supplemental Security Income. The trust will provide funds to the beneficiary as well as supplementing the government benefits.
What is the cost to set up a Special Needs Trust? Trusts can range between $2,000-$3,000 in legal costs. These costs include making and the trust's implementation. Sometimes, a court-approved process is required for the settlement.
A licensed professional is required to create an Special Needs Trust. For instance, a trustee must be able to manage the trust in order to ensure that the beneficiary is not disqualified from receiving government benefits. Furthermore, a professionally-trained trustee can be more beneficial than a family member. There are many other experts that can aid with the administration of a Special Needs Trust. These include a Trust Advisor or Trust Protector. The Protector is typically a lawyer with knowledge of government benefits as well as special trust administration for those with special needs.
One of the advantages of establishing one of the benefits of establishing a special needs trust is that the funds in it are tax-deductible. Another advantage of setting up such a trust is that it is not available to creditors. The trust funds are available only to the disabled person and will not be used for any other purpose. The benefits may outweigh the negatives. These funds can be costly and may take away some independence from the disabled.
Special needs trusts must be funded with the use of a minimum. It is recommended to fund a trust with at least $100,000. This amount can vary depending on your specific situation. While there isn't a limit, all trusts require a certain amount of money. The typical cost for funding a trust is between $2,000 to $100,000. However, it can be higher if the trust has higher. Professional trustees are charged fees each year, which can be up to 1.5%. Most experts advise that trusts be funded by at least $100,000.