• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Law Offices of Jonathan G. Stein Logo
(916) 247-6868
  • Home
  • About Me
    • Organizations, Publications and Presentations
  • About You
  • Practice Areas
    • Debt Collection
    • Estate Planning
    • Personal Injury
    • Landlord Tenant
  • Client Testimonials
  • Resources
    • Blog
    • Brochures
    • Helpful Links
  • Contact

Trust Lawyers: Inviting Others to Contribute to Your Child’s Special Needs Trust

July 28, 2021 by Jonathan Stein

Many parents worry about how they will fund a lifetime of care for their child with special needs. This is especially concerning if the parents are fearful that there will not be enough money left for housing, caregivers, and basic life necessities when mom or dad pass away.

 

When I meet with parents of children and adults with disabilities, one of the first legal tools that we discuss is a Third-Party Special Needs Trust. A Third-Party Special Needs Trust is a specialized type of trust that allows the beneficiary to utilize the assets and funds in the trust while still maintaining eligibility for public benefits like Supplemental Security Income (SSI) and Medicaid.

 

Parents are, of course, able to leave their assets to the Third-Party Special Needs Trust when they pass away. The trust can also be listed as a beneficiary for retirement benefits and life insurance policies. However, one overlooked benefit of having a Third-Party Special Needs Trust in place is that the trust can be a recipient of gifts from people other than the parents. Friends, grandparents, aunts and uncles, and other relatives can also contribute to the trust or even include the trust as a beneficiary of their own assets when they pass away.

 

Generally, a “Stand-alone” Third-Party Special Needs Trust should be created to achieve such goals. A Stand-alone Third-Party Special Needs Trust is established while the benefactor is alive and is not funded with the beneficiary’s own assets. Again, this helps to ensure that others who feel led to generously contribute to your child’s care can do so throughout his or her lifetime while also providing benefits after the beneficiary’s death, such as guaranteeing that any remaining assets can go to charity or other loved ones without having to be paid back to Medicaid.

 

I cannot stress enough that the type of trust you set up for your child with disabilities matters and that it can have a tremendous effect on how parents are able to plan ahead and provide for their child’s future. Of course, before allowing friends or relatives to contribute financially to your child’s care, you should consult with a qualified special needs planning attorney who can make sure that you have the appropriate trust set up to receive the gifts. If you need assistance, simply contact The Law Offices of Jonathan G Stein at 916.247.6868 to schedule an appointment.

 

Categories: Estate Planning, Family Matters Tags: #specialneedstrust

Primary Sidebar

Sign Up For Our Newsletter Below

Lists*

Allow Me to Help You

    Footer

    Contact Us

      Practice Areas

      • Debt Collection
      • Estate Planning
      • Personal Injury
      • Landlord Tenant
      The information contained in this website is provided for informational purposes only, and should not be construed as legal advice on any matter. The transmission and receipt of information contained on this Web site, in whole or in part, or communication with The Law Offices of Jonathan Stein via the Internet or e-mail through this website does not constitute or create a lawyer-client relationship between this firm and any recipient. You should not send any confidential information in response to this webpage. Such responses will not create a lawyer-client relationship, and whatever you disclose will not be privileged or confidential unless this firm has agreed to act as your legal counsel and you have executed a written engagement agreement with The Law Offices of Jonathan Stein. The Law Offices of Jonathan Stein © 2023. All rights reserved. | Sitemap | Privacy Policy | Disclaimer