If you have a child or other loved one with special needs, you may need to make specific provisions in your estate plan to establish ongoing care and other long-term arrangements. The established estate planning lawyers at Begum Peláez-Prada PLLC could offer the right solutions for your situation.
By retaining a San Antonio special needs planning lawyer, you could receive help creating an effective estate plan that includes the right legal structures to ensure your loved one’s future for ongoing support and peace of mind. Call today to get started.
Creating a comprehensive roadmap for a loved one’s future is a core purpose of estate planning. When you have a special needs child or other loved one whom you wish to provide for in your estate plan, you need a customized set of solutions to account for all eventualities. Planning for the care of a loved one with special needs can be costly. The San Antonio legal professionals from our firm understand the unique elements of long-term financial planning for special needs and could evaluate all potential tax implications.
A special needs trust is one of the most common and effective legal structures to ensure your loved one’s financial security. Through a trust, you (the grantor) can name a trustee (such as a family member, friend, or professional), to manage the administration of assets for the beneficiary (the person with special needs).
A third-party special needs trust contains the assets of the beneficiary’s parents, grandparents, or another third party. A first-party special needs trust contains the assets of the actual beneficiary. This structure is typically used for a beneficiary who has received a large settlement, insurance proceeds, or inheritance.
A special needs trust serves multiple purposes. Funds from the trust are not paid out directly to the beneficiary. Instead, these assets are used to pay third parties for goods and services to care for your special needs family member. For example, assets from a special needs trust can pay for the cost of:
A beneficiary of this type of trust can still receive government benefits such as Social Security Disability Income, Supplemental Security Income, or Medicaid.
In addition to a trust, a San Antonio attorney could evaluate other legal structures for your estate plan to safeguard a loved one with special needs. One potential option is a support trust. This type of trust is not always preferable to a special needs trust unless your loved one is already ineligible for government benefits. A support trust is designed to cover only basic expenses like food and shelter. Moreover, beneficiaries of support trusts are barred from receiving public assistance at all.
If necessary, a lawyer could walk you through the process of appointing a guardian for your loved one. The guardian would oversee your loved one’s healthcare, education, finances, and other key areas of their life. An attorney could also help you assess other legal options, such as Medicaid planning and tax-advantaged savings accounts to cover living expenses.
A San Antonio special needs planning lawyer could help ensure your child’s financial security while structuring assets to maintain eligibility for government benefits. A properly drafted special needs trust requires extensive knowledge of the laws and procedures involved.
Sasha Begum and the legal team at Begum Peláez-Prada PLLC are deeply familiar with the complexities of special needs planning. We could create an exhaustive plan for your loved one that maximizes financial and tax advantages while considering their current and future needs. Contact us today to speak with an attorney about establishing a special needs estate plan and receive guidance tailored to your circumstances.
