Special Needs Trust Attorney Serving Los Angeles, California
If a special needs trust is not in action when the disabled individual inherits money, he or she will have to face reduction in the governmental benefits as they have already received more than the permissible amount to qualify for the benefits.
How can Special Needs Trust help?
As a way to ensure that the governmental benefits are intact, the family can put their money, property and other assets in a trust. A trustee will then be appointed who will spend the money on behalf of your loved one. The trust funds will act as cover costs above and beyond the governmental benefits one is receiving, such as travel expenses, medical and dental expenses, recreational activities, etc. This way by placing the money in a Special Needs Trust (SNT) instead of just handing them the assets and cash, can help the concerned person better. When you contact a Special Needs Trust Attorney serving Los Angeles, California, you can learn more about it and get all your questions answered.
What are the different types of SNT?
There are two kinds of SNT: a first party SNT and a third party SNT. In a first party SNT, a person is directly linked with the funds. For example, if a person contested for the trust and won it in judgment, then he or she will have a first party SNT. Similarly, if someone, for example, the parents of a child with autism, desired to leave the estate to their child, then this will fall under the regulations of third party SNT.
How much is it going to cost me?
In my career as a Special Needs Trust Attorney serving Los Angeles, California, clients have often asked me this question; so here I am going to explain it thoroughly. The first thing here is that the fee for creating a trust depends on the size of the estate. For example, the special needs trust that is of the size $700,000 might cost somewhere between $2,000 and $3,000. Now if the estate is smaller, the fee will be smaller as well.
However, the cost of operating the trust is almost always going to be more than the cost of creating a trust. This is because the trustee will be entitled to a certain compensation for his services. The trustee is entrusted with the task of investing the assets of the trust, and this he or she shall do prudently. This is why the trustee is entitled to a certain amount and this amount might easily reach five figures at the end of the term if the child happens to live a long life.
Is there a need for SNT? Does it improve the life of the needy?
When it comes to the elderly and persons with disability, they have to always have a caretaker. In such a scenario if the caretaker unfortunately meets with an accident, the person is left with nursing provided by the state of California. However, given the conditions in the government sponsored nursing homes, it is always best to keep some assets behind as insurance.
People tend to put a lot of value into the wage earning parent. However, one of the common mistakes families make is not to give enough attention to the care giving parent.