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Self-Settled Special Needs Trust
Receiving an inheritance, settlement, or other assets can create an unexpected problem for individuals with disabilities who rely on means-tested benefits such as Medicaid or Supplemental Security Income (SSI). In many cases, receiving assets outright can jeopardize eligibility for these important programs. A self-settled special needs trust may provide a solution. This trust allows assets…
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How Your Children Receive Their Inheritance
Inheritance planning is not just about how much each child gets but also about how they receive it. These decisions can be different for each child. For older children who responsibly manage their finances, a lump sum may be the right choice. For younger adult children, you could consider distributing the inheritance in installments at…
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Fairly Does Not Necessarily Mean Equally
Parents generally try to treat all their children fairly. “Fair” does not always mean “equal.” A thoughtful estate plan considers each child’s unique circumstances to create distributions that truly support their needs. If one child has a high-paying career while another struggles financially, you may want to provide more financial support to the child who…
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Creative Ways to Use SNT Funds-Part 2
In addition to the expenditures discussed last week, an SNT can purchase the following. Therapeutic services and programs-Nontraditional medicine, aromatherapy, reiki, yoga, and massage therapy, as well as spa treatments and grooming services. Pets and pet care-The costs of pet adoption, veterinary care, food, grooming, pet supplies, and training. Education and skill-building-Educational programs, classes, or…
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Creative Ways to Use SNT Funds-Part 1
As long as expenditures do not break the Special Needs Trust (SNT) distribution rules, a trustee is free to put money toward purchases that enrich the beneficiary’s life. The following are a few ideas. Vacations-Airfare, hotel accommodations, cruises. Entertainment and hobbies-Movies, concerts, theater tickets, arts and crafts supplies, photography equipment, musical instruments, and physical and…
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What a Special Needs Trust Can Pay For
Despite the restrictions on what Special Needs Trusts (SNTs) can pay for, they can be used to pay for many expenses on the beneficiary’s behalf. SNTs can pay for medical expenses that Medicaid does not cover, such as inpatient psychiatric services, over-the-counter medications, elective surgeries and procedures, dental and vision care, hearing aids, a private…
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What a Special Needs Trust Cannot Pay For
The basic spending rule for Special Needs Trusts (SNTs) is that the funds are intended to supplement—not replace—needs-based government benefits. SSI includes shelter costs as “in-kind support and maintenance” (ISM) and are part of its eligibility and benefit calculation. The following are ISM and generally shouldn’t be paid for by an SNT: rent or mortgage…
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Enriching Life with a Special Needs Trust
A special needs trust (SNT) is a trust for a disabled beneficiary that doesn’t jeopardize the beneficiary’s eligibility for needs-based government benefits. SNT funds can generally be used to pay for almost anything that falls outside of basic support. There are two main types of SNTs: first-party and third-party. The main difference between them is…
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Choosing a Special Needs Trust (SNT) Trustee
Special needs trusts have highly technical terms and administrative requirements, and the rules governing them are complicated. A simple mistake on the part of the trustee could unintentionally hurt the beneficiary. A layperson as the trustee of an SNT can hire an attorney to provide guidance and assistance and they may need to do so…
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Loved Ones Understand Your Wishes
Estate planning documents can be complex and subject to interpretation. When your loved ones know your wishes, there is less room for misinterpretation. Communicating your rationale for distributing your estate can reduce resentment and promote understanding. This can be important if your plan seems unequal at first glance. If a problem arises, you may be…
Category: Special Needs
Eckert & Krautkramer, LLC
Protecting Assets, Preserving Dignity, Ensuring Peace of Mind
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