Indianapolis Special Needs Trusts Attorney
A special needs trust works to provide financial support to a relative who is incapacitated and suffers from physical, mental, or developmental disabilities. These trusts may be one of two types:
- Third-Party Special Needs Trust: These trusts are established and funded by a person who is not the beneficiary, such as a parent, grandparent, sister, or brother. The trust is created during the lifetime of the third party in some cases, or under the terms of a will. These trusts provide an important advantage beyond providing for the needs of the incapacitated relative: they make it possible for the individual to retain access to the benefits available through the government.
- Self-Settled Special Needs Trust: These trusts are created with funds from the beneficiary, but are established by another party, such as the legal guardian of the beneficiary. At the death of the beneficiary, any remaining funds must be paid to the governmental agencies for care provided during the lifetime of the beneficiary.
How to Establish a Special Needs Trust
If you have a relative who is incapacitated, ensuring they are cared for should you pass away is a great concern. With no limits on the amount of assets that can be placed in the trust, the process is customized to suit the individual and the resources of the creator. The first step in creating such a trust is a conversation to determine what assets should be placed in the trust. Meet with us at Trapp Law, LLC for legal assistance in creating a special needs trust for your loved one. There are several legal requirements for creating these trusts, and some restrictions. Under 42 U.S.C. 1396p(d), a trust can be established for individuals who receive public benefits, under certain conditions:
- The recipient must be 65 years or younger.
- The trust established must be an irrevocable trust (cannot be changed in the future).
- These trusts require a provision that at death, remaining funds will be paid to Medicaid. When the trust is created to provide support for more than one individual, a portion of the remaining funds is retained to pay for support for the other named beneficiaries.
Trapp Law, LLC in Indianapolis: Special Needs Trust Lawyer
The needs of the person who is the beneficiary of the trust are unique. In some cases, a person has been severely injured (such as a traumatic brain injury) and has lost the capacity to provide for, or care for themselves. The person may have been the recipient of a settlement or jury award, and such funds may need to be placed in a special needs trust, so the individual can continue to receive government benefits. In other cases, the trust will be funded by a family member who wants to ensure a loved one is cared for after the trust creator passes away.
Get Help from Trapp Law, LLC
At Trapp Law, LLC, we provide experienced legal counsel for estate planning, wills, and the establishment of various types of trusts, including special needs trusts. We invite you to meet with us to discuss what is needed for your loved one. We are responsive, experienced, and offer trust creation services at affordable rates. Our founder, Angela Trapp, is one of Indianapolis’s most respected attorneys and is imminently qualified to assist you with this important matter.