• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Wilcox Attorneys, PA

Wilcox Attorneys, PA an Arkansas Estate Planning & Trust Information Center

Northwest Arkansas Estate Planning Attorneys (479) 443-0062

Client Vault
  • Home
  • Our Firm
    • Our Firm
    • About the American Academy
    • Advantages of Working With Our Firm
    • Attorney and Staff Profiles
    • News & Events
    • Speaker Connection
  • services
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Incapacity Planning
    • Legacy Planning
    • Pet Planning
    • Secure Act
    • Special Needs Planning
    • Trust Administration & Probate
  • Webinars
  • Practice Areas
  • Resources
    • DocuBank
    • Elder Law Reports
    • Estate Planning Resources
      • Estate Planning Articles
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Estate Planning Reports
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • Frequently Asked Questions
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • Incapacity Planning
      • Legacy Wealth Planning
      • Medicaid Planning
      • Pet Planning
      • Probate
      • Trust Administration & Probate
    • Newsletters
    • Pre Consultation Form
    • Trust Administration & Probate Resources
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
  • Reviews
    • Our Reviews
    • Review Us
  • Contact Us
  • Blog

When is a Special Needs Trust in Fayetteville Necessary?

May 29, 2014 by Deb Sexton Leave a Comment

special needs trust in fayettevilleThe purpose of a Special Needs Trust is to provide resources for a disabled person in an effort to enhance the quality of their lives.  A Special Needs Trust can also be used to maintain eligibility for Supplementary Security Income (SSI) and/or Medicaid.  A Special Needs Trust can provide for all other needs that SSI and Medicaid do not provide.  This type of trust can be used for the benefit of a wide variety of individuals. Depending on the needs of your loved one, you may want to consider a Special Needs Trust in Fayetteville.

Individuals with Permanent Special Needs

If someone who is disabled is still capable of earning a living, that person may not be eligible for government assistance, such as SSI or Medicaid.  A special needs trust is most commonly used for those who have a permanent or severely disabling condition. Individuals with blindness, organic brain damage, chronic mental illness, physical paralysis (paraplegia), developmental disabilities, Down syndrome or congenital disabling afflictions such as cerebral palsy or cystic fibrosis are generally automatic beneficiaries of government benefits.

Individuals with Special Needs Who Does Not Need Government Assistance

Most of us cannot know with certainty whether our loved ones will need SSI or Medicaid.  So it is wise to create a special needs trust, so you do not have to be concerned about your loved one receiving an inheritance. Most special needs trusts are drafted so that the trustee has the power to terminate the trust if it is no longer necessary.

Individuals Who May Need Government Benefits Later

Your loved one may not be disabled now, but may need assistance from SSI or Medicaid in the future because of a condition that will likely get worse. Although it may be difficult to anticipate that person’s future needs, and will likely require some guesswork, it makes sense to create a special needs trust now. You can always give the trustee the power to terminate the trust if it is not actually needed.

Individuals Who Cannot Manage Finances

For those who are unable to prudently manage an inheritance a special needs trust can be a wise decision.  Trusts created for this purpose are often called “spendthrift” trusts, because they are generally used to keep assets out of the hands of a beneficiary (and of his or her creditors) and, instead, in the control of a trustee. For example, someone with mild developmental disabilities, mild autism, attention deficit disorder or bipolar syndrome might benefit from a trust, because it will prevent reckless spending of an inheritance.  This is true even if the individual is not considered disabled.

Protecting a disabled loved one from being the victim of fraud is another good reason to use a special needs trust.  The unfortunate reality is that there are many dishonest people out there who specifically target individuals with mental or physical disabilities that they believe have money. A special needs trust can prevent your loved one from falling prey to those predators.

  • Author
  • Recent Posts
Deb Sexton
Latest posts by Deb Sexton (see all)
  • Estate Planning is Essential Whether You Are Married or Not - April 25, 2018
  • Income Tax Basis in Estate Planning – Part 2 - April 23, 2018
  • The Downsizing Generation: How to Handle a Surplus of Stuff When a Loved One Ages - April 18, 2018

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Wilcox Attorneys, PA

DOWNLOAD OUR FREE ESTATE PLANNING WORKSHEET

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

Subscribe to Our Blog

Subscribe to our blog for all the latest estate planning news and updates!

Office Address

Fayetteville
2766 Millennium Drive
Fayetteville, AR 72703
Phone: (479) 443-0062

Office Address

Prairie Grove
1100 Division Street, Suite 4
Prairie Grove, AR 72753
Phone: (479) 846-6026

( By Appointment Only )

Office Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 12:00 PM

Map

map for office
  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

footer-logo

© 2023 American Academy of Estate Planning Attorneys, Inc.