Planning Strategies For The Next Chapter

Serving Eugene, Roseburg, & Salem

Planning for the future of a loved one with disabilities requires meticulous estate planning to ensure their needs are met even in your absence. This involves aligning legal, financial, and care considerations both presently and in the years to come.

Key Components of Special Needs Estate Planning

Several trust structures can be utilized to address these unique planning requirements:

• Support Trusts: These trusts obligate the trustee to provide for the beneficiary’s essentials, such as food, housing, clothing, medical care, and education. However, beneficiaries of Support Trusts may become ineligible for public assistance programs like Supplemental Security Income (SSI) or Medicaid. Therefore, if your loved one depends on these benefits, establishing a Support Trust may not be advisable.

• Special Needs Trusts: Designed to manage assets while preserving the beneficiary’s eligibility for public assistance, Special Needs Trusts come in two primary forms:

• Third-Party Special Needs Trust: Funded with assets from someone other than the beneficiary, such as parents or other family members, these trusts are often integrated into an estate plan and activated through a will or living trust.

• Self-Settled Special Needs Trust: Established using the beneficiary’s own assets—perhaps from a personal injury settlement—these trusts cater to individuals requiring lifelong care. Notably, any remaining assets in the trust after the beneficiary’s death may be subject to reimbursement claims by the state for public assistance provided during the beneficiary’s lifetime.

Incorporating a Special Needs Trust into your estate plan is crucial if you aim to provide for a loved one with disabilities after your passing. These trusts can be standalone entities funded with specific assets, like life insurance, or sub-trusts within existing living trusts, tailored to your family’s unique circumstances.

By thoughtfully selecting the appropriate trust structure, you can ensure your loved one’s financial security while maintaining their access to essential public benefits.