A third-party special needs trust is a crucial estate planning tool designed to provide for the long-term care and financial security of a loved one with special needs. Unlike other types of trusts, a third-party special needs trust is funded by assets that do not belong to the beneficiary.
This means that parents, grandparents, or other family members can contribute to the trust without jeopardizing the beneficiary’s eligibility for government benefits.
At Nici Law Firm, we specialize in creating customized special needs trusts that ensure your loved one is cared for while maintaining their eligibility for essential benefits like supplemental security income (SSI) and Medicaid.
What Is a Third-Party Special Needs Trust?
A third-party special needs trust is established by someone other than the beneficiary, typically a family member, to hold assets for the benefit of a person with special needs.
The key advantage of this type of trust is that it allows the beneficiary to receive financial support without losing access to vital government assistance programs.
This trust can be funded during the lifetime of the trust creator (known as the grantor) or as part of an estate plan, ensuring that the beneficiary is provided for in the long term.
Why Choose a Third-Party Special Needs Trust?
One of the main reasons to establish a third-party special needs trust is to protect the beneficiary’s eligibility for means-tested government programs.
Since the trust’s assets are not considered the beneficiary’s property, they can continue to receive SSI, Medicaid, and other benefits that have strict income and resource limits.
Flexible and Customizable
A third-party special needs trust is highly flexible, allowing the grantor to specify how the funds should be used to enhance the beneficiary’s quality of life. This can include paying for medical care, education, recreation, and other expenses not covered by government benefits.
Avoid Probate and Ensure Privacy
Assets placed in a third-party special needs trust are not subject to probate, meaning they can be distributed according to the trust’s terms without the delays and costs associated with the probate court. Additionally, the trust provides privacy, as it does not become a public record like a will.
Protection from Creditors
The assets within a third-party special needs trust are generally protected from creditors, ensuring that the funds are used solely for the beneficiary’s needs.
How We Can Help
At Nici Law Firm, we understand the complexities involved in planning for a loved one with special needs. Our experienced attorneys will work closely with you to establish a third-party special needs trust tailored to your family’s unique situation.
We take the time to understand your goals and ensure that the trust is structured to meet the beneficiary’s needs while safeguarding their access to critical government benefits.
Whether you are planning for the future or need to create a trust as part of your current estate plan, our team is here to guide you every step of the way.
Contact Us Today
Planning for a loved one with special needs requires careful consideration and expert legal guidance. If you’re ready to set up a third-party special needs trust or need more information about your options, contact Nici Law Firm today.
Contact Nici Law Firm at 239-449-6150 or complete our online contact form to schedule a detailed consultation. We are committed to helping you protect your loved one’s future with a well-structured special needs trust that provides security, flexibility, and peace of mind.
