Deer Park Special Needs Trusts Attorneys Help You Provide Care for Your Loved One
Texas law firm secures protection for family members with disabilities
Special needs trusts are an important aspect of estate planning for people with disabled loved ones. These financial vehicles are set up to fund the long-term care of those who are likely to be indefinitely unable to provide for themselves. The Law Office of Shelly A. Merchant in Deer Park, Texas assists with sound guidance and responsive services throughout the trust creation process.
Creating a special needs trust in Texas
Creating a special needs trust involves deciding on the type of trust, choosing a trustee to manage it, drafting the governing instrument and funding the trust. The assets in the trust are owned not by the beneficiary but by the trust itself. The trust instrument dictates the terms of how the trustee is to allocate monies for the beneficiary’s care. Trust creation must be done carefully, as mistakes and oversights can affect your loved one’s financial support after you are gone. Our attorney will ensure that the trust is properly and efficiently set up and complies with applicable laws.
Benefits of establishing a special needs trust
A special needs trust can serve multiple desired goals. It can:
- Provide financial security for your disabled child or other family member after your death.
- Preserve your family member’s eligibility for government assistance, because assets in the trust are not owned by the beneficiary so are not used in measuring their resources.
- Permit flexibility in distributing assets while also controlling how they are used.
- Allow for professional management by trustees experienced in trust administration.
There may be additional benefits depending on your particular situation and the type of special needs trust you choose.
Types of special needs trusts
There are two basic types of special needs trusts: first party and third party. A first-party trust is funded by the beneficiary’s own assets, such as an inheritance or gift, a court settlement or assets they had before becoming disabled. A third-party trust is funded by assets bestowed by parents, grandparents or other individuals. A major difference in these trusts is that when the beneficiary of a first-party trust dies, any remaining funds may have to go to reimburse the government for benefits paid. With a third-party trust, any remaining assets can pass to secondary beneficiaries.
Topics your Texas special needs trust attorney will cover
When you meet with our Deer Park estate planning lawyer, we will address the following topics related to special needs trusts:
- How to ensure the trust is legally compliant so that the beneficiary can continue to receive government benefits
- How government benefits are coordinated when the person has a special needs trust
- How to select an appropriate trustee to manage the special needs trust
Understanding the pros and cons of such a trust can help you make an informed decision when it comes to protecting the future of your disabled child or other loved ones. Whether you retain our firm for setting up a trust or for administering your estate, you can rely on us to deliver skillful legal services.
Choosing a trustee for a special needs trust
The trustee you appoint can be a family member, a friend or a professional. It is important to select someone who has clear understanding of the significant responsibility they are undertaking and who will work in the best interests of your disabled family member. Someone with money management and investing experience can help foster growth of trust assets and prevent diminishment of their value.
Contact a knowledgeable special needs trust attorney today
The Law Office of Shelly A. Merchant in Deer Park assists Texas parents, grandparents and other parties with all aspects of special needs trust creation. Call 281-817-0998 or contact us online to arrange a time to speak with an experienced attorney.