Special Needs Trusts Lawyers

Protecting Your Loved One’s Future

At Boroja, Bernier & Associates PLLC, we understand the unique challenges families face when caring for a loved one with special needs. One of the most important tools to ensure that your family member’s financial future is secure while maintaining their eligibility for government benefits is a Special Needs Trust (SNT). Our team of experienced attorneys is committed to helping families throughout Macomb County and Metro Detroit create comprehensive special needs plans that protect their loved ones while offering peace of mind.

What is a Special Needs Trust?

A Special Needs Trust (SNT) is a legal arrangement designed to ensure that individuals with disabilities can receive financial support without jeopardizing their eligibility for government programs such as Medicaid and Supplemental Security Income (SSI). These programs have strict income and asset limits, and receiving an inheritance or other financial gifts can disqualify your loved one from receiving essential benefits.

A Special Needs Trust allows you to set aside funds for the benefit of your loved one while ensuring that these funds do not count toward their eligibility for public assistance programs. The trust is typically managed by a trustee who uses the funds for the beneficiary’s needs, such as healthcare, education, and other personal expenses, without interfering with their eligibility for government aid.

Why You Need a Special Needs Trust

There are many reasons why establishing a Special Needs Trust is essential for families with a loved one who has special needs:

• Preserve Eligibility for Government Benefits: A properly drafted special needs trust ensures that your loved one can still qualify for critical government programs like Medicaid and SSI, which can provide health care, income, and other benefits.
  
• Provide for Additional Needs: A Special Needs Trust can pay for items and services that government programs do not cover, such as special medical treatments, therapies, transportation, entertainment, and other personal needs that improve your loved one’s quality of life.
  
• Avoid Direct Inheritance Issues: Without a trust, a direct inheritance could cause your loved one to lose eligibility for government benefits. A Special Needs Trust allows you to leave a legacy to your loved one without negatively impacting their benefits.
  
• Peace of Mind: Knowing that your loved one will be taken care of after your passing provides peace of mind for families, ensuring that they will have financial resources for their future needs.
  

How Does a Special Needs Trust Work?

A Special Needs Trust is typically funded with assets such as life insurance policies, retirement accounts, real estate, or cash. The assets are managed by a trustee, who is responsible for making sure that the trust’s funds are used to improve the beneficiary’s quality of life while ensuring that the funds are not spent in a way that would disqualify the beneficiary from government assistance.

There are two main types of Special Needs Trusts:

• First-Party Special Needs Trust: Funded with assets belonging to the individual with special needs, such as an inheritance or personal injury settlement. This type of trust is often required when a person with special needs receives a lump sum of money.
• Third-Party Special Needs Trust: Funded by family members or others for the benefit of the individual with special needs. This type of trust is often used in estate planning to ensure that a loved one’s financial needs are met after the parents or family members pass away.
  

The Importance of Choosing the Right Trustee

Choosing the right trustee for a Special Needs Trust is critical. The trustee is responsible for managing the trust’s assets and making distributions that comply with the law and maintain the beneficiary’s eligibility for government benefits. It’s essential to select someone who understands the unique needs of the beneficiary and is capable of managing the trust properly.

How BBA Law Can Help

At Boroja, Bernier & Associates PLLC, we specialize in helping families create Special Needs Trusts that protect their loved ones and ensure they have the financial support they need for the future. Our elder law attorneys have extensive experience in drafting and managing Special Needs Trusts, and we are dedicated to helping you navigate the complexities of planning for your loved one’s needs.

If you are considering a Special Needs Trust or have questions about how to set one up, contact us today at 586-123-4567 to schedule a consultation. Let us help you create a plan that ensures your loved one’s well-being while safeguarding their eligibility for essential government benefits.