Yes, you can establish a special needs trust through your will, though it’s a more complex process than creating one as a standalone document during your lifetime.
What are the benefits of a special needs trust?
A special needs trust (SNT) is a vital tool for individuals with disabilities and their families, designed to provide financial support without jeopardizing government benefits like Supplemental Security Income (SSI) and Medicaid. Approximately 1 in 4 adults in the United States lives with a disability, and many rely on these public benefits to cover essential needs. Without proper planning, an inheritance could disqualify a beneficiary from receiving crucial assistance. SNTs allow assets to be used for supplemental needs – things like recreation, education, medical expenses *not* covered by government programs, and personal care – without impacting eligibility. Steve Bliss, as an Estate Planning Attorney in Wildomar, frequently emphasizes that a well-structured SNT offers peace of mind, knowing your loved one will be cared for long after you’re gone. It’s about maintaining both financial security *and* access to essential services.
How does a testamentary special needs trust differ?
A testamentary special needs trust is created *within* your will. This means the trust doesn’t come into existence until after your death and the will goes through probate. The key difference from a “living” or inter vivos SNT (created during your lifetime) is the lack of immediate control. While a living trust allows you to manage the assets and see the benefits during your lifetime, a testamentary trust relies on the executor of your will to establish and fund it correctly. “I once had a client, Mrs. Eleanor Vance, who believed she could simply write a clause into her will leaving funds for her son, Thomas, who had Down syndrome,” Steve Bliss recalls. “She thought it was straightforward. Unfortunately, the language was vague and didn’t specifically address the need to preserve his SSI eligibility. After her passing, Thomas lost a significant portion of his benefits because the inheritance was considered income, creating a considerable financial hardship for his caregivers and drastically impacting his quality of life.” This illustrates the critical importance of precise drafting and expert legal guidance.
What are the potential drawbacks of creating a trust through a will?
The primary drawback is the probate process. Probate can be time-consuming, costly, and public. It typically takes months, even years, to complete, delaying access to funds for the beneficiary. Furthermore, probate records are public, meaning anyone can view details of your estate. There’s also the risk of challenges to the will, which can further prolong the process. Steve Bliss explains, “For clients concerned about speed and privacy, a living trust is often the preferred method. It avoids probate altogether, allowing the trustee to immediately manage the assets for the beneficiary’s benefit.” According to a recent study by the American Association of Retired Persons, probate costs can range from 3% to 7% of the estate’s total value, a significant expense that a living trust can help avoid. It is also important to consider that a will must be validated by a court before it is enacted.
How did a proactive approach save the day for the Millers?
The Millers came to Steve Bliss after a difficult experience with a previous estate planning attempt. They had drafted a will themselves, including a clause intended to benefit their daughter, Sarah, who has cerebral palsy. However, the language was ambiguous, and they feared it wouldn’t adequately protect her SSI benefits. Steve Bliss worked with them to create a comprehensive testamentary special needs trust, clearly outlining the terms of the trust and ensuring it met all legal requirements. He also advised them on funding the trust with life insurance policies. When Mr. Miller passed away, the process was smooth and efficient. The trust was established quickly, and Sarah continued to receive her SSI benefits without interruption. “It was a huge relief,” Mrs. Miller shared. “We knew we had done everything we could to protect Sarah’s future, and Steve’s expertise gave us peace of mind.” This story highlights the value of seeking professional guidance to avoid costly mistakes and ensure your loved one’s needs are met. It’s about more than just legal documents; it’s about providing a secure and fulfilling life for those you care about most.
“Proper estate planning, especially when it involves a special needs beneficiary, is a testament to your love and commitment.” – Steve Bliss, Estate Planning Attorney.
In conclusion, while creating a special needs trust through your will is possible, it requires meticulous planning and expert legal advice to ensure it achieves its intended purpose and protects the beneficiary’s access to vital government benefits.
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
estate planning attorney near me
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “Can estate planning help protect a loved one with special needs?” Or “What happens to jointly owned property during probate?” or “What is a successor trustee and what do they do? and even: “What happens if I miss a payment in Chapter 13 bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.