Our loved ones mean the world to us. When we picture the future, we want to know that those we love will enjoy safety and security, no matter what unexpected events or challenges life may bring our way. If you are the parent of a small child or you have a dependent with special needs, you want to trust that they will be in good hands if tragedy strikes. Although we cannot control the future, we can make informed choices that can shield our loved ones in the event of an unexpected illness, incapacity, or loss. For instance, the parent of an adult child with special needs wants to know that this loved one will be able to continue receiving the government benefits and financial support they rely on when their caretakers are no longer around to care for them.
Although the prospect of estate planning may seem intimidating, most people find that devoting the necessary time and energy into putting a customized estate plan in place allows them to feel lighter and more hopeful about the future. Enlisting the guidance of a knowledgeable and empathetic Spokane estate planning attorney is the best way to make informed choices about your loved ones and your legacy. Special Needs Trusts, also called Supplemental Needs Trusts, can be an especially useful estate planning tool for those with loved ones who rely on government benefits. Let’s take a look at how special needs trusts work in Washington state, some of their advantages and potential drawbacks, and how working with a knowledgeable and experienced Spokane special needs trust attorney can empower you to install legal protections to keep your loved ones safe and secure.
Special Needs Trusts in Washington State
First, it’s helpful to gain a basic understanding of what special needs trusts are and how they operate in Washington state. Essentially, a special needs trust “is a type of trust that’s set up for people with disabilities or access and functional needs. It helps provide individuals with financial support without disqualifying them for government benefits, such as Medicaid or Supplemental Security Income (SSI).” Since needs-based government benefits adhere to specific income and asset requirements, exceeding these thresholds can disqualify someone from receiving the assistance they need. In other words, supporting your adult child with special needs can be challenging to do, as you want to avoid disqualifying them from obtaining the government assistance they rely on.
This is where a special needs trust can play a crucial role. When you set up a special needs trust, the funds you place in the trust can provide financial support to the beneficiary (your loved one with special needs), and the funds in the trust will not count toward their personal income. Simply put, the funds in the trust will not impede or interfere with their ability to access government benefits. When you establish a special needs trust, you will serve as the grantor (the individual who creates the fund), appoint a trustee (a trusted individual who will manage the trust), and designate a beneficiary (the loved one you hope will receive and benefit from the trust’s funds). For the most part, the funds in the special needs trust can be used to cover expenses that are not provided by the government. This can include the beneficiary’s medical expenses, transportation, and other costs relating to their daily life and well-being. It’s helpful to think of a special needs trust as a way to maximize the impact of the governmental benefits, as those benefits often fall short of the entirety of the beneficiary’s expenses.
Can a Trust Hold Title to Real Property?
Housing is a considerable cost for anyone, especially adults who have special needs. As you take steps to set up your estate plan, it’s helpful to consider what types of assets can be placed in a special needs trust to support your designated beneficiary. It’s possible for you to set up a third-party special needs trust and fund it with various financial assets (including real property, such as a family home). Or, you may fund the trust with enough financial resources so the trust beneficiary can purchase a home of their choosing. In either case, the trustee you appoint to oversee the management of the special needs trust will provide additional support to the beneficiary. The primary consideration in any decision should be determining how home ownership or putting the title to real property in a special needs trust could impact the beneficiary’s access to needs-based benefits. Moreover, the implications of whether the special needs trust is created as a first-party or a third-party supplemental needs trust will be different. It’s possible to have a special needs trust holding title to real property, but you will want to work with an experienced Spokane attorney specializing in special needs trusts to ensure that this option best supports your specific needs and goals.
How a Special Needs Planning Lawyer Can Help
Estate planning is far from a one-size-fits-all endeavor. Instead, an estate planning attorney will work with you to identify your priorities and articulate your vision for the future. From there, you and your attorney can explore a variety of estate planning tools and strategies to support your goals and protect your loved ones. Special needs trusts can be particularly nuanced, so it’s essential to take a comprehensive look at the potential benefits and limitations of establishing a special needs trust to support a vulnerable loved one. Seeking the guidance of an attorney with expertise in special needs planning can provide you with reliable and personalized guidance while ensuring compliance with state laws and safeguarding the best interests of individuals with special needs and their families. It’s never too soon to start planning for the future—get in touch with a compassionate and knowledgeable Spokane special needs trust lawyer today to get started.
If you are interested in developing a customized estate plan in Washington that protects your loved ones and your legacy, Kristina Mattson Law is here to assist you. Call (509) 998-6629 to get started with an experienced and caring Spokane estate planning attorney.
