If you are one of many who is responsible for the care of a special needs child or adult, you may be considering whether you need a special needs trust. You may also be wondering how expensive the process will be. The first step is determining whether you need a special needs trust and which type of trust will be most beneficial. The cost to set up a special needs trust will depend on many factors.
Do you need a special needs trust?
The main purpose of a special needs trust is to provide a way to set aside money needed to care for someone with special needs, while protecting that person’s eligibility to receive government benefits. Some forms of government benefits are available only on a need basis, which usually means the recipient must have limited income or financial resources. So, a major advantage of creating a special needs trust is that the funds are protected and will not jeopardize eligibility for government benefits.
Specifically, a “supplement care trust” provides a way to supplement government benefits, such as Medicaid or Supplemental Security Income (SSI), while maintaining eligibility for those benefits. These trusts can be created to either exist while you are alive, or to spring into action after your death.
Benefits of a special needs trust
One of the most important benefits of this type of trust is that you will be able to ensure your loved-one’s financial security, as well as his or her eligibility to receive government assistance, even after your death. Another important benefit is that relatives and friends are also able to contribute to their needs by making gifts to the trust.
An attorney experienced in special needs planning can help you to properly establish the responsibilities of your chosen trustee, as well as any limitations that should be placed on the trustee’s power to manage and distribute the funds from the trust.
What is the cost to set up a special needs trust?
Each client’s needs are different and the complexity of the required documents can vary. So, it is often difficult to provide a list of services and applicable rates. At Wilcox Attorneys, PA, we offer a free 30 minute consultation and always explain in detail the plan we propose and inform our clients as to the fees for all options in advance.
The cost to set up a special needs trust will also vary, depending on the complexity of the trust. Also, depending on who you choose as the trustee, you may be charged a small percentage of the funds for the trustee to manage and distribute them.
If you have questions regarding special needs trusts, or any other estate planning needs, please contact Wilcox Attorneys, PA online or by calling us at (479) 443-0062.
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