How Much Does A Special Needs Trust Cost In Texas
Supplemental Needs Trust Rules In TX
Special needs children thrive when they can access the best care possible. That is why parents of special needs children are concerned about the kind of care their children will receive after they are gone. Spouses of adults with dementia also have similar fears.
While government programs can provide funds to cover basic needs, you have to find ways to supplement those funds with more resources through a Special Needs Trust in Texas. But this can only work if the trust is executed properly and managed correctly.
What You Need To Know About Special Needs Trust
Supplemental Needs Trust Texas
A Special Needs Trust is one way to ensure that your loved one continues to get the care they need even after you are gone. Below are some Special Needs Trust takeaways:
- They can be funded by anyone: These trusts can be funded by parents, grandparents, siblings, or friends. Family members can leave assets to the trust so that the person with special needs does not lose eligibility for benefits.
- They supplement government benefits: Government benefits for people with special needs only cover basic needs. But the trust can cover things such as rehabilitation, equipment, in-home caregivers, and other medical costs. It can also cover travel, camps, entertainment, classes, and other enriching activities.
- Pick a capable trustee or administrator: The trustee administers the trust on behalf of the person with special needs. That means the trustee must be compassionate to the beneficiary and trustworthy. The administrator must work with tax advisors and lawyers to ensure the trust is valid and works for the interests of the beneficiary.
- Payback provisions: Trusts that are funded by the beneficiary’s assets from sources such as insurance payouts, legal settlements of an inheritance may be subject to the payback provision. The beneficiary can access government benefits but after they die, the government will claim the remaining assets and money as reimbursement for the public benefits.
- Talk to an Attorney: An estate planning lawyer that has experience dealing with Special Needs Trusts can ensure that everything is set up and maintained correctly. The lawyer can also answer any question about creating trusts.
Remember that even if the Special Needs Trust will be self-funded, it must be formed by a parent, legal guardian, grandparents, or a court.
What You Need To Know About Special Needs Trusts
Special Needs Trust Texas Form
A properly established and fully funded trust works as intended for as long as the trustee manages it the right way. Any improper use of the income or principal of a trust by the trustee can lead to public benefits being withdrawn or reduced. That is why choosing a trustee that understands investment standards and how to maintain trust records is important.
Other things a trustee should be familiar with include:
- Types of benefits and the benefits the beneficiary is receiving
- Taxes that may result from the distribution of trust funds
- Requirements that the beneficiary must fulfill to continue getting benefits from programs like Medicaid and SSI
- Types of assistance that programs like SSDI and Medicare provide the beneficiary
- Items, services, and other things that can be purchased using trust funds without jeopardizing benefits received by the beneficiary