Sirkin
Law Group, P.C.
818.340.4479
800.300.9977
Email: info@sirkinlaw.com Los Angeles Special Needs Trust Lawyers Attorneys |
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Special Needs Trust Attorneys in Los Angeles California: 818-340-4479 Click here To email us:  Mina Sirkin, Woodland Hills Estate Litigation Law Attorney Board Certified Specialist in Estate Planning, Trusts and Probate Law Trust Litigation Los Angeles Probate Litigation Los Angeles Conservatorship Los Angeles Living Trust Attorney Los Angeles |
A Few Things to Consider When Planning a Special Needs TrustSome
of the mistakes parents make when planning for special needs trusts are
due to the anxieties and concerns of the parents over the future
well-being of their special child.
PARENTS' THOUGHTS: The
main goal for a parent of a special needs child is to insure that the
child has a place to live, and sufficient caregiving. Many times,
the main concern masks planning opportunities, and limits the special
needs child in fully benefitting from the assets of the parents.
WHAT TO DO: A. Do talk to a professional fiduciary to see if you can have a professional fiduciary as a successor Trustee. B. Do consider whether a life insurance policy can pay the successor trustee of the special needs trust so that there is liquidity available. C. Do transfer your home to your trust, with instructions to the Trustee as to how to handle the living circumstances of your child. In most cases, a child who is on SSI will pay a small rent to the trustee of the special needs trust, in order to keep in line with SSI rules. D. Do Distinguish between Third Party Trusts, which do not have a pay-back requirement, v. First Party Trusts, which do have a pay-back provision. Parents' money results in a Third Party Trust. Child's money results in a First Party Trust. E. Be sure to discuss what happens to your special needs child, if you become incapacitated. This is one of the issues which are often missed by parents. We tend to think of aging and death, but must also consider incapacity. WHAT NOT TO DO: A. Do not name your special needs child as a successor trustee, even if your child has capacity. B. Do not burden your other children, with the life-time duty to take care of your special needs child. C. Do not set a standard for what the trustee should do. Special needs trusts are supposed to be purely discretionary. Setting a standard of distribution for the trustee, makes is non-discretionary, and therefore, the trust is no longer a special needs trust. D. Do not disinherit your special needs child. You do not need to disinherit your special child, you simply need to create a special needs trust within your main trust, to provide for supplemental needs of your special child. This allows your child to receive his/her government benefits, and the supplemental items from the special needs trust. E. Do not name your special needs child, as a direct beneficiary of any account, IRA, Life Insurance, or pension.
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