Special Needs Trusts

special needs trusts East Greenwich, RI

Special Needs Trusts Lawyer East Greenwich, RI

At McCarthy Law, LLC, our knowledgeable trust attorneys have extensive experience helping Rhode Island families address various legal issues, including special needs trusts in East Greenwich, RI. If you find yourself needing to set up a trust, enlist the help of one of our skilled East Greenwich, RI special needs trusts lawyers. Inspired by her grandfather, Samantha McCarthy Jarvis dedicated herself to disability activism work during college and has continued to help people of all types throughout her career.

What Is A Special Needs Trust?

A Special Needs Trust (SNT) is a legal arrangement designed to benefit individuals with disabilities, ensuring they receive essential support and services without jeopardizing their eligibility for government assistance programs like Supplemental Security Income (SSI) or Medicaid. These trusts manage and protect funds and assets for the disabled individual, allowing them to enjoy a higher quality of life while still qualifying for public benefits.

Types Of Special Needs Trusts

1. First-Party Special Needs Trust

  • Funding: Established using the disabled individual’s own assets, such as an inheritance, legal settlement, or savings.
  • Eligibility: Typically for individuals under the age of 65 who have disabilities.
  • Medicaid Payback: Upon the death of the beneficiary, any remaining funds must be used to repay Medicaid for services provided during their lifetime.

2. Third-Party Special Needs Trust

  • Funding: Established and funded by someone other than the disabled individual, usually parents, grandparents, or other family members.
  • Flexibility: The assets in this trust do not affect the beneficiary’s eligibility for public benefits, and there is no Medicaid payback requirement.

3. Pooled Special Needs Trust

  • Funding: Managed by nonprofit organizations, these trusts pool resources from multiple beneficiaries, allowing for professional management of the assets.
  • Accessibility: Beneficiaries benefit from economies of scale in asset management, and the trust can be funded by the disabled person or a third party.
  • Medicaid Payback: Similar to First-Party Trusts, any remaining funds after the beneficiary's death may be used to repay Medicaid.

Key Features And Benefits

  • Maintains Eligibility for Public Benefits: By holding assets in an SNT, the beneficiary does not lose eligibility for means-tested government programs like SSI or Medicaid.
  • Professional Management: Trusts are often managed by a trustee or a professional management service, ensuring funds are used appropriately and in the best interest of the beneficiary.
  • Enhanced Quality of Life: The trust can cover a wide range of expenses not provided by government benefits, such as education, rehabilitation, personal care, vacations, and other quality-of-life improvements.

How To Set Up A Special Needs Trust

Setting up a Special Needs Trust involves several steps:

  1. Consult with an Attorney: It’s crucial to work with an attorney experienced in special needs planning to ensure the trust is properly drafted and complies with state and federal laws.
  2. Select a Trustee: The trustee is responsible for managing the trust's assets and making distributions. This can be a family member, friend, or a professional trustee.
  3. Fund the Trust: Assets are transferred into the trust. The source and timing of the funding depend on the type of trust being established.
  4. Plan for the Future: The trust should be part of a broader estate plan, considering the long-term needs of the disabled individual and ensuring that the trust will continue to serve its purpose after the current trustee's death or incapacitation.

Common Misconceptions

  • Loss of Control: Some may believe that setting up an SNT means losing control over their assets, but the trust is designed to ensure the beneficiary's long-term care and comfort.
  • Trusts Are Only for the Wealthy: SNTs are not only for the affluent; they can be tailored to different financial situations, ensuring that disabled individuals of all economic backgrounds can benefit.

A Special Needs Trust is a critical tool in planning for the future of a loved one with disabilities. It offers peace of mind by providing financial support while preserving access to essential government benefits. If you or a family member could benefit from a Special Needs Trust, consulting with a legal expert in estate planning is a vital first step.

At McCarthy Law, LLC, we understand the importance of securing the future for your loved ones with disabilities. Our experienced team is here to guide you through the process of establishing a Special Needs Trust tailored to your family’s unique needs. Whether you need a First-Party, Third-Party, or Pooled Special Needs Trust, we provide personalized legal advice to ensure your loved one’s assets are protected while preserving their eligibility for vital government benefits.

With over 10 years of experience, Samantha McCarthy Jarvis with McCarthy Law, LLC is a member of the Rhode Island Bar Association and is dedicated to building relationships and providing you with a highly personalized experience. Contact us today to schedule a consultation and take the first step toward ensuring the well-being and security of your loved one. Let McCarthy Law, LLC help you build a brighter future.

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