Special Needs Trusts
Lawyer for Special Needs Trusts in Denver
A Special Needs Trust (also referred to as a "Supplemental Needs Trust") is a type of Living Revocable Trust or
Irrevocable Trust. The purpose of the Trust is to provide funds to a disabled beneficiary (typically one's child or grandchild) without disqualifying him from receiving government assistance, e.g. Medicare, Medicaid and Social Security Disability. Typically, the assets are not transferred to the disabled beneficiary until the death of the Grantor; however transfers can be made during the lifetime of the Grantor.
In order for the Trust to qualify as a Special Needs Trust, the beneficiary must not have any right to the income or principal from the Trust without the approval of the Trustee. In turn, the Trust is forbidden under the terms of the Trust to distribute funds if the disbursal would disqualify the beneficiary from receiving government assistance.
Special Needs Trusts are not intended to pay for the basic needs of the beneficiary. Rather, they are intended to enrich the disabled person's life by funding the purchase of luxury items that are not permitted or covered by the government program. Such Trusts typically provide funds for education, counseling, elective medical procedures, recreational activities and travel.
All parents of special needs children should consider establishing a Special Needs Trust for the benefit of their child. A creative special needs trust insures peace of mind for the parents by insuring that the needs of their child will be met - even after the parents' death.
Are you considering establishing a special needs trust?
The Law Office of James A. Littlepage provides detailed and personalized estate planning services to individuals throughout Denver and other Front Range communities, including the preparation of Special Needs Trusts. To obtain knowledgeable legal assistance in forming a Special Needs Trust that is tailored to fit your situation, contact us.
If you are seeking to establish a special needs trust for a disabled person, contact a Denver estate planning attorney to guide you through the process.