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What Goes into a Comprehensive Utah Estate Plan?
Families with a special needs child or sibling have unique concerns when it comes to estate planning in Utah. In addition to creating a last will and testament and other estate planning documents that could help look after your loved ones, you must also take into consideration whether these estate planning tools will render the special needs family member ineligible for important needs-based public benefits.
Also, you may wish to consider guardianship and backup guardianship for your disabled loved ones, in addition to a conservatorship.
Special needs planning and estate planning for those with special needs can provide money management strategies to benefit disabled children for their lifetime, protect their government benefits eligibility, designate care providers, and resolve long-term housing issues. Without proper estate planning for long-term care of special needs individuals, these individuals may find their eligibility for government benefits disqualified and their lives made more difficult.
You’ve spent your days caring for your special needs loved one. But you may not always be there for them. Whether because of incapacitation or death, it is worth taking the time to plan ahead for certain possibilities in order to ensure that your disabled family member is well taken care of.
Our law firm has personal experience relating to special needs planning and caring for disabled individuals. We believe this makes us uniquely qualified to answer your questions and concerns regarding special needs planning in the state of Utah.
To learn more about our legal services, please get in touch with our law firm to schedule a consultation with our compassionate legal team today.
What Are Good Estate Planning Tools for Special Needs Planning?
The steps involved in special needs planning will vary depending on the age of the disabled person and whether you are ensuring long-term care for that individual or simply making sure that an influx of money and resources is used wisely and does not cost them access to government benefits.
Our legal team can help you establish a guardianship or conservatorship for your disabled loved one. This can entrust a responsible individual with the care and supervision of your disabled loved one after you are gone.
We can also help you create various types of trusts, including support trusts and special needs trusts, that may benefit your special needs family member.
Additionally, we can help draft a will or trust for your estate plan to ensure that your beneficiaries and heirs recover the estate assets you wish them to have.
What is a Support Trust?
Support trusts require that the designated trustee make distributions of financial support to disabled individuals in areas like shelter, medical care, education, food, clothing, and other basic needs. The beneficiaries of a support trust are not eligible to receive financial assistance through government needs-based programs like Medicaid or Social Security Income (SSI). If your special needs child requires government assistance from SSI or Medicaid, perhaps a support trust is not the way to go. Instead, consider a special needs trust.
What is a Utah Special Needs Trust?
Special needs trusts are commonly regarded as the most effective way to help children with disabilities secure long-term care and financial assistance from their loved ones. These trusts maintain and distribute estate assets to a disabled individual while also maintaining that individual’s eligibility for public assistance benefits programs like SSI and Medicaid.
This type of trust works by designating a trustee to keep and manage the funds for the disabled person’s benefit without actually allowing the beneficiary to access the funds directly. So long as the proper procedure is followed, government organizations will not include funds left in special needs trusts in the beneficiary’s personal assets.
Utah has strict rules regarding the administration and creation of special needs trusts. It is highly recommended that you retain professional legal representation from an experienced estate planning lawyer.
Which Disabled Individuals May Benefit from the Creation of a Special Needs Trust?
Several different types of disabilities may require or otherwise benefit from the creation of a special needs trust.
These include, but are not limited to, the following:
- Blindness and other visual impairments
- Autism
- Down syndrome
- Traumatic brain injury
- Mental illness
- Deafness
- Severe physical disability
- Epilepsy
- Multiple sclerosis
- Cerebral palsy
- And any disability that might entitle an individual to SSI or Medicaid benefits.
What Do Special Needs Trusts Provide For?
Special needs trusts give control of trust assets to the trustee without disqualifying the trust beneficiary from receiving the funding through government assistance programs like SSI or Medicaid. The funding provided by a special needs trust must go towards permissible expenses only. These expenses are meant to improve the quality of life for the special needs individual.
Special needs trust typically provide for the following:
- Transportation costs and motor vehicle repairs
- Certain medical expenses
- Eye exams and glasses
- Food and essential dietary needs
- Educational pursuits
- Home maintenance
- Clothing
- Assistive living Devices
- Physical rehabilitation therapy
- Certain dental expenses
- Entertainment
- Training
- Financial help starting a business
- Home furnishings
- Electronic equipment and computers
- Legal assistance
- Guardianship expenses
- Funeral and burial expenses
- Travel
- Recreation
- Mental health therapy
- And more.
What if You Do Not Include Your Special Needs Family Member in Your Estate Plan?
Some parents assume that if they disinherit their special needs child, the child will qualify for public assistance. However, public assistance programs cannot cover all the necessities that a child may need throughout their lifetime. We do not recommend disinheritance.
However, leaving a large inheritance to a special needs child can also be risky. If the inheritance meets a certain threshold, it may negatively impact the child’s eligibility for needs-based programs.
Other parents may believe that a sibling or other family member will hold to their promise to care for their special needs loved one. This can be risky. Not only could people go back on their word, but if they face financial hardships, they may be rendered unable to help the special needs person.
We highly recommend contacting our law firm to speak with our experienced estate planning attorney to discuss your special needs planning goals.
Contact Our Law Firm to Schedule an In-Depth Case Evaluation Today
Able & Strong Law, Inc. is a law firm located in Bountiful, UT. We have extensive experience representing clients in the complex nature of special needs planning. To learn more about how we can assist you during this difficult and complicated process, don’t hesitate to get in touch with our law firm to schedule your initial consultation with our legal team.
You may contact us at 385-334-5024.
