Special Needs Trust Factors

Nearly one in five Americans has a disability. Life’s circumstances can impact earning potential for a disabled individual and is a consideration for a family’s finances.

Often, a concern is how to fund a disabled individual’s lifetime needs. A direct inheritance may cause problems with obtaining critical government benefits, for instance.

But there is a solution. A Special Needs Trust provides immediate and long-term support for the disabled and caregivers. Money held in a trust, if set up properly, is not considered an asset of the individual. Government assistance is not mitigated or stopped when a proper Special Needs Trust is established. It’s a win-win.

A Special Needs Trust is a common sense solution to a complex challenge. To think through this type of trust, consider these three factors:

• Do you receive government benefits?  If government assistance is a source of income or benefit for you, a special needs trust can hold the beneficiary’s assets so benefits are maintained. Whether you have current or future, state or federal government assistance, this trust can protect your benefits.
• Where do the trust’s funds come from? Do the funds come from the beneficiary’s own pocket or from someone creating the trust as a part of an estate plan?  Knowing the source of the funds helps the trustee determine the type of trust to be established: first or third-party. A first-party trust is established by the person with a disability. A third-party trust is established by someone other than the beneficiary.
• Who is on your team? Legally, a special trustee and attorney are needed to create and administer a special needs trust. At Southeastern Trust Company, we help build your team by finding the right people to advise this type of trust, starting with finding an experienced legal expert to help.

Our devoted staff has over 120 years of combined trust experience. We help families and individuals navigate the complex rules associated with government benefits and eligibility guidelines. Your finances are our responsibility, and we carefully comply with regulations to ensure your funds are safe. We work together as a team, and we are individually familiar with every client relationship, assisting with any issue. We have had the privilege of assisting clients with a range of needs, including home renovations, securing trained childcare providers, setting up long-term nursing care, and paying taxes.

Clients are welcome to walk into our office and meet with our team at any time. There is no call center, rather a dedicated trust professional familiar with your specific situation. We provide you and families of loved ones with disabilities peace of mind by providing ongoing access to needed resources. We advocate on your behalf.