Yes, a testamentary trust can be a powerful tool for supporting adult children with special needs, providing ongoing care and financial security long after their parents are gone. These trusts, created within a will and taking effect upon death, allow parents to designate specific assets and instructions for the benefit of their children, ensuring their unique needs are met without jeopardizing eligibility for essential government benefits like Supplemental Security Income (SSI) and Medicaid. It’s a complex area of estate planning, but one that offers peace of mind to parents dedicated to the lifelong well-being of their children. Approximately 1 in 4 adults in the United States lives with a disability, highlighting the widespread need for these specialized planning tools; and often parents are the primary caregivers throughout their lives.
What are the key benefits of a special needs trust?
A properly structured special needs trust, often referred to as a Supplemental Needs Trust, is designed to supplement, not replace, government assistance. This is crucial; assets held within the trust do not count towards the asset limits for programs like SSI and Medicaid. The trust can cover expenses not covered by these programs, such as therapies, recreational activities, travel, specialized equipment, and even personal care. “It’s about enhancing quality of life, not disqualifying someone from the help they need,” explains Steve Bliss, an Estate Planning Attorney in Wildomar. According to the National Disability Rights Network, roughly 61 million adults in the United States live with a disability, creating a substantial demand for careful estate planning solutions. These trusts also provide a layer of protection from creditors and potential mismanagement of funds.
How does a testamentary trust differ from a living trust for special needs?
While both testamentary and living (or revocable) trusts can be used for special needs planning, they function differently. A testamentary trust is created within a will and only comes into effect after death, requiring probate. A living trust, on the other hand, is created during the parent’s lifetime and can be used immediately, avoiding probate. “Many parents prefer a living trust for its immediate accessibility and control, but a testamentary trust can be a viable option, especially if estate planning is started later in life,” notes Steve Bliss. Generally, a living trust provides more flexibility and control during the parent’s lifetime, while a testamentary trust is a more straightforward option for those who prefer simplicity. Probate in California can be a lengthy and expensive process; the average cost is between 5% and 10% of the estate’s value.
What happened when the estate plan wasn’t quite right?
Old Man Tiber, a retired fisherman, always worried about his son, Finn. Finn had Down syndrome and relied heavily on government assistance and the care of his father. Tiber had a will, but it simply left everything to Finn outright. Sadly, Tiber passed away unexpectedly. When the estate was settled, Finn received a lump sum of money, which immediately disqualified him from SSI and Medicaid. He lost vital benefits and the small cottage he’d always known as home was in jeopardy. The public defender was able to petition the court to set aside some of the inheritance into a special needs trust, but it was a costly and emotionally draining process for everyone involved. “It highlighted the importance of proactive planning, rather than reactive measures,” says Steve Bliss, recalling the case. It serves as a somber reminder that well-intentioned but poorly executed estate plans can have devastating consequences.
How did a properly structured trust save the day?
The Miller family faced a similar situation, but their story had a much happier ending. Mrs. Miller, anticipating the future needs of her daughter, Clara, who has autism, worked closely with Steve Bliss to create a comprehensive estate plan that included a testamentary special needs trust. Upon Mrs. Miller’s passing, the assets designated for Clara were seamlessly transferred into the trust, ensuring Clara’s continued eligibility for SSI and Medicaid. The trust funds were used to provide Clara with enriching therapies, comfortable housing, and engaging activities, all without jeopardizing her essential benefits. “It was a relief to know that Clara was well cared for, and that my wishes were being honored,” shared Mr. Miller. The foresight and careful planning prevented a financial crisis and provided lasting security for their daughter. Approximately 85% of individuals with disabilities require some form of long-term support, making proactive estate planning crucial for ensuring their future well-being.
<\strong>
About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
estate planning attorney near me
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
>
Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “How often should I update my estate plan?” Or “What assets go through probate when someone dies?” or “What is a living trust and how does it work? and even: “Will my wages be garnished during bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.