Types Of Special Needs Trusts
A special needs trust is an essential piece of planning for the future of a disabled child or loved one. Planning is one thing, but understanding the challenges they face is very different.
At Sikov and Love, P.A., we want you to know the struggles ahead of your family before you start. As estate planning lawyers working for Pittsburgh families, we know exactly how much difficulty you’re facing. But you should know that there are three types of special needs trusts:
Common Law Trusts
Common law special needs trusts are often set out in wills and are known as “testamentary special needs trusts.” Or such trusts can be created by a parent during the parent’s lifetime, which is known as “inter vivos special needs trusts.” Both types help protect an adult child’s ability to obtain and keep governmental benefits.
Payback special needs trusts are set up with funds that belong to the special needs individual and must, upon the death of that individual, pay back medical assistance for the benefits that were received. These types of trusts are sometimes used when the special needs individual is awarded money in a lawsuit or inherits money from a parent when a parent has not set up a testamentary special needs trust.
Pooled special needs trusts are administered by third-party nonprofit organizations and enable persons with special needs to retain their governmental benefits and have more financial freedom, as well as to have an organization to turn to for assistance in financial or other types of matters when a family may no longer be available.
Thorough, Caring Estate Planning Attorneys On Your Side
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