how to find a lawyer knowledgable about special needs trusts

by Dr. Maude Koss DDS Published 2 years ago Updated 1 year ago 3 min read

The first place to look for a qualified special needs attorney is among friends, colleagues and other professionals. Word of mouth and positive referrals are usually among the best resources for locating an attorney, and especially one who must have particular skills.

The Academy of Special Needs Planners may provide some help. There are also lawyer rating services such as Martindale-Hubbell and Super Lawyers that may be helpful. A simple Google search may provide you with some names of lawyers who are really not qualified.Nov 24, 2020

Full Answer

Do I need a lawyer to set up a special needs trust?

What do trustees need to know about Special Needs Trusts?

A special needs lawyer can ensure that the trust document contains all the proper language, which in turn, will certify that the trust is valid and legally enforceable. A qualified special needs lawyer will also thoroughly understand the requirements of a special needs trust and will already be familiar with the unique trust laws that apply.

Is a special needs trust valid if property is not acquired?

Special Needs Trusts. Special needs trusts are trusts that are created for the benefit of a person who is physically or mentally disabled. As in any trust, the trust establishes a legal relationship between the settlor or grantor, who created the trust; the trustee, who oversees trust assets, and the beneficiary, who receives distributions from ...

How much does a special needs trust cost?

Your situation is unique. Our Special Needs law attorneys take everything into account. Our association only accepts attorneys with a long track record in the area and high ethical standards in special needs law. Count on us to achieve the best possible outcome for you and your loved ones. Please note: Each of our attorneys has their own fee ...

What are the disadvantages of a special needs trust?

Disadvantages to SNT

Cost. Annual fees and a high cost to set up a SNT can make it financially difficult to create a SNT – The yearly costs to manage the trust can be high. ...
Lack of independence. ...
Medicaid payback.

Sep 6, 2012

What are the responsibilities of a trustee of a special needs trust?

The trustee is responsible for keeping the trust records and for providing accounts to the beneficiary and sometimes to others. Like investing, not all trustees are going to prepare accounts on their own - sometimes they hire bookkeepers to do this.Aug 3, 2016

Who controls the money in a special needs trust?

trustee

Like all trusts, a special needs trust is organized around the people in three roles: a settlor (also called grantor) who creates the trust and provides the money. a beneficiary (the person with the disability), and. a trustee, who manages the money for the sole benefit of the beneficiary.

What can money in a special needs trust be used for?

Special Needs Trusts can also pay for home and vehicle maintenance along with a variety of other items like a vacation, a computer, electronic equipment, educational expenses, and ongoing monthly bills such as phone, cable, and internet services.

Can a 401k be put into a special needs trust?

The answer is a clear no. A disabled person cannot transfer a retirement plan into a special needs trust without first liquidating it and paying taxes on the realized income.Mar 11, 2021

Does being a trustee affect benefits?

The trust is a formal legal arrangement whereby trustees hold money on behalf of the beneficiaries, in accordance with the terms of your will. The money is protected and if the right kind of trust is used, it will not affect any means-tested benefits.

What are the 3 types of trust?

To help you get started on understanding the options available, here's an overview the three primary classes of trusts.

Revocable Trusts.
Irrevocable Trusts.
Testamentary Trusts.

More items...

•

Aug 31, 2015

What is the difference between a trust and a special needs trust?

It's created while I'm living. That's called a living trust. A special-needs trust is another type of trust similar to it, but it is there to provide for a person with a disability, a child, a grandchild or a spouse who has a disability.

What is a d4C trust?

Pooled Trusts. A pooled trust, found in the US Code under 1396p(d)(4)(C), is also known as a d4C trust. It is established and managed by a charity or non-profit organization and is funded by the disabled person, for that individual's sole benefit.Jan 29, 2020

Can you withdraw from a special needs trust?

The standard of what the funds can be used for is very broad, but if your loved one benefits from a purchase or payment, then distribution from the trust is allowed. So, purchasing a home, car, furniture, medical supplies, appliances, or even money for a vacation are all examples of what is allowed.Sep 23, 2021

What expenses can be paid from a trust?

Most expenses that a fiduciary incurs in the administration of the estate or trust are properly payable from the decedent's assets. These include funeral expenses, appraisal fees, attorney's and accountant's fees, and insurance premiums.

How do I keep my SSI and inheritance money?

Fortunately, there is a simple way to accept an inheritance without risking loss of SSI benefits. By setting up a special needs trust and depositing the inheritance into it, the beneficiary can continue to receive SSI while also getting the benefit of the inheritance.Feb 10, 2022

Can a special needs trust give money to a beneficiary?

Special needs trust cannot , however, give money directly to the beneficiary or interfere with services that are already provided by the government like Social Security Income and Medicaid benefits.

How old do you have to be to set up a special needs trust?

With a special needs trust, there are age limits. Specifically, the special needs trust must be created and funded before a beneficiary turns 65 years old. Once they turn 65, no additional funds may be added to the trust.

What are the benefits of a special needs trust?

Some other advantages of a special needs trust include: 1 It enables a beneficiary to keep their eligibility status, so they can continue collecting government benefits along with the income from the trust. 2 The trust property cannot be accessed by creditors or used to pay off judgments. It is strictly distributed to care for the beneficiary and to provide for their needs. 3 It provides a couple of favorable tax incentives, such as tax write-offs. 4 Property placed in a special needs trust is less likely to be subjected to waste or improper spending issues.

What is a trust?

A trust is a type of fiduciary arrangement that is formed between three parties: a settlor, a trustee, and one or more beneficiaries. In general, the purpose of a trust is to provide legal protection over the contents held within the trust (usually monetary funds or assets). However, there are many different kinds of trusts ...

What should be included in a trust document?

The trust document should include the legal name of the beneficiary and a statement that specifically designates the trust to them . This same specificity requirement applies to the language used to draft the trust. For instance, there should only be one way to distribute funds to a beneficiary. There should be a provision in the document ...

What is the role of an appointed trustee in a trust?

The appointed trustee must have full discretion to spend and manage the trust in accordance with the trust’s purpose. The contents of the trust must be distributed to the beneficiary in a way that will not jeopardize their qualifications to obtain government benefits or assistance.

What can a trust lawyer do?

An experienced trust lawyer can help you draft, edit, and review all of the complicated trust documents and can set up the trust. Also, if you want to draft a letter of intent to hand out to certain individuals, your attorney will be able to help you with this task as well.

Special Needs Trusts

Special needs trusts are trusts that are created for the benefit of a person who is physically or mentally disabled. As in any trust, the trust establishes a legal relationship between the settlor or grantor, who created the trust; the trustee, who oversees trust assets, and the beneficiary, who receives distributions from the trust assets.

Should I Hire a Special Needs Trust Attorney?

Special needs trusts are created by complex federal and state laws that are often difficult to understand. Retaining an attorney who is familiar with the creation of special needs trusts can ensure that your assets are protected and you or your loved ones future needs will be met.

How to set up a special needs trust?

Created and funded by a third party (typically a friend or family member), a third party special needs trust can be set up in two ways, both of which benefit the beneficiary: 1 Sub-trust of a parent’s Revocable Living Trust: This won’t be funded until the death of that parent and should be set-up when a parent wants to leave money to their child and no other relatives do. This is great for future planning. 2 Single Stand-alone Trust: This is used when relatives want to provide cash gifts throughout the lifetime of the disabled individual. These funds can be used immediately.

What happens if you fail to create a special needs trust?

If you fail to plan and create a third party SNT for your beneficiary, they may have to petition the court to modify your trust to place those assets in a third party SNT, which is permitted in limited circumstances. Alternatively, the beneficiary may lose their benefits or may fund a first party SNT, which will require Medi-Cal payback provisions.

What is SNT trust?

Also referred to as a supplemental needs trust, an SNT is created with the needs, lifestyle, and future of the disabled loved one in mind. More often than not, it’s crafted to help the beneficiary receive both government and trust funds, and can also serve as a protection against financial abuse by providing direction to ensure ...

Who is the trustee of a trust?

Trustee, the person who manages (and has sole discretion) of the trust on behalf of the beneficiary. Furthermore, the trustee is obligated to provide distributions to the beneficiary as outlined in the trust. The beneficiary or another family member can have the trustee removed should they fail to meet this duty.

What is the purpose of a trustee?

The trustee is responsible for when and how to use the funds to benefit the beneficiary; The main purpose of this trust is to supplement the support the beneficiary receives from the government and public benefits ; The beneficiary can’t sell or give away his/her trust rights.

What happens if a disabled person wins a settlement?

If the disabled loved one wins a big settlement and the payout is a lump sum of money, directing that into a special needs trust will ensure that those funds can be used for non-essential expenses to improve quality of life while also providing peace of mind and financial security by receiving regular payments.

Can a person with special needs manage their money?

Oftentimes a loved one with physical and/or mental special needs is unable to manage money appropriately. Setting up a special needs trust allows a third party to manage the funds on their behalf to ensure the funds are spent wisely on things the individual needs and wants.

Donald G. Messinger

I agree with both prior answers - you should investigate qualifications of the CPA before having the tax return prepared. What you don't share, however, is why you lack confidence in your current CPA. While special needs trusts have some additional tax twists, most CPAs should be able to do the work properly.

Gregory L. Jensen

You are going about this the RIGHT way--checking things out. The $750 fee sounds pretty reasonable--depends on the level of review the CPA needs to on on the SNT. You might call the state CPA Board for a referral to a SNT specialist. People do that often w lawyers and it seems to be a good starting place to identify qualified people...