practice areas
Special Needs Trusts
“At Lacey Lyons Rezanka, we understand the complexities of establishing Special Needs Trusts (SNTs). Our dedicated team provides expert guidance throughout the entire process, ensuring that your loved one’s financial future is safeguarded.” — Stephen J. Lacey, Managing Member of Lacey Lyons Rezanka
A Special Needs Trust (SNT) is an essential planning tool designed to protect government benefits for individuals with disabilities who may inherit assets. Our experienced attorneys specialize in creating these trusts to secure your loved ones’ financial well-being while maintaining their eligibility for critical benefits. Whether your needs are straightforward or complex, we offer the expertise necessary to tailor a trust that meets your specific circumstances and objectives.
TYPES OF SPECIAL NEEDS TRUSTS
First-Party Special Needs Trusts:
These trusts, though less common, are governed by strict federal regulations (42 USC § 1396p). They protect assets directly owned or earned by the beneficiary, ensuring continued eligibility for government programs like Medicaid.
Third-Party Special Needs Trusts:
The most widely used type, third-party trusts enable families to leave inheritances or other assets to loved ones with special needs without jeopardizing their Medicaid or Supplemental Security Income (SSI) eligibility. These trusts can also incorporate Achieving a Better Life (ABLE) accounts, which allow for tax-free savings to cover disability-related expenses.
KEY CONSIDERATIONS WHEN ESTABLISHING A SPECIAL NEEDS TRUST
Protecting Inheritances:
For parents of children with disabilities or spouses with special needs, a SNT ensures that inherited assets are preserved without disrupting the beneficiary’s access to government benefits.
Navigating Income Thresholds:
Maintaining Medicaid eligibility requires careful management of income. A SNT can effectively manage excess income by placing it into a third-party trust, ensuring that your loved one continues to receive vital medical care without risking disqualification.
Managing Windfalls:
Unexpected financial windfalls – such as a large gift or settlement – can threaten a beneficiary’s eligibility for government assistance. An SNT offers a secure way to manage these funds while safeguarding access to crucial benefits.
For personalized guidance tailored to your unique situation, contact our team today to schedule a consultation.