Establishing a trust for a disabled family member, or multiple members, requires careful planning to ensure their specific needs are met while preserving eligibility for crucial government benefits like Supplemental Security Income (SSI) and Medicaid. A single “pooled” or “supplemental needs” trust can indeed be established to benefit multiple disabled individuals, offering a cost-effective solution compared to creating separate trusts for each person. However, the structure and administration must adhere to strict guidelines to remain compliant. According to the National Disability Rights Network, over 61 million adults in the United States live with a disability, making proper planning essential for their long-term well-being.
What are the benefits of a single trust versus multiple trusts?
The primary advantage of a single trust lies in its administrative simplicity and cost-effectiveness. Maintaining one trust document, managing one set of assets, and paying one set of trustee fees are significantly less burdensome than doing so for several individual trusts. This is especially helpful for families with limited resources or complex financial situations. Furthermore, a single trust can foster a sense of collective support and shared resources among beneficiaries. It is important to note, however, that each beneficiary’s individual needs must still be carefully considered and addressed within the trust document. As of 2023, the average cost of establishing a special needs trust ranges from $3,000 to $7,000, and ongoing administrative fees can range from 1% to 3% of the trust assets annually.
How does a special needs trust protect government benefits?
A properly drafted special needs trust, also known as a supplemental needs trust, is designed to hold assets for the benefit of a disabled individual without disqualifying them from receiving needs-based government benefits. These benefits, like SSI and Medicaid, have strict income and asset limits. Assets held *in* the trust are generally not counted towards those limits, allowing the beneficiary to maintain their access to crucial healthcare, housing, and financial assistance. “The goal isn’t to create a lavish lifestyle, but to enhance their quality of life *within* the boundaries of their benefits,” as Steve Bliss often explains to clients. The trust can be used to pay for supplemental items and services not covered by government programs, such as entertainment, recreation, travel, or specialized therapies.
What happened when a family tried to do it alone?
Old Man Tiberius and his two grandsons, both with Cerebral Palsy, were left a small inheritance when their mother passed away. Believing they could simply open a savings account in trust for the boys, they deposited the funds without consulting an estate planning attorney. A few years later, when the boys applied for Medicaid assistance, their application was denied. The funds in the savings account *were* counted as assets, immediately disqualifying them. The Tiberius family found themselves in a frantic scramble, attempting to “spend down” the inheritance on allowable expenses to meet the Medicaid eligibility requirements. They wasted a significant portion of the funds on things that ultimately didn’t improve their grandsons’ long-term quality of life, and the process was incredibly stressful and time-consuming.
How did careful planning save the day for the Hernandez family?
The Hernandez family faced a similar situation when their daughter, Sofia, was diagnosed with Down syndrome. Knowing they wanted to provide long-term financial security for her without jeopardizing her benefits, they proactively sought the guidance of Steve Bliss. Together, they established a pooled special needs trust, naming a reputable non-profit organization as the trustee. The trust was funded with a modest inheritance and regular contributions from the family. Years later, when Sofia needed specialized therapy not covered by Medicaid, the trust funds were readily available to pay for it. “It’s about peace of mind,” explains Mrs. Hernandez, “knowing that Sofia will always have the resources she needs, and that we’ve done everything we can to protect her future.” This careful planning not only ensured Sofia’s well-being but also provided the Hernandez family with a sense of security and relief, knowing they had navigated the complex world of special needs planning successfully.
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
| estate planning | revocable living trust | wills |
| living trust | family trust | estate planning attorney near me |
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “How do trusts help avoid family disputes?” Or “Do all wills have to go through probate?” or “Can I change or cancel my living trust? and even: “Will my employer find out I filed for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.