Yes, a trust can absolutely be created to address a temporary disability that is reasonably expected to become permanent, and it’s a proactive estate planning tool many individuals facing such health challenges utilize with the guidance of an attorney like Steve Bliss. These are often called “special needs trusts” or, more broadly, “supplemental needs trusts,” designed to manage assets for someone who may require long-term care without jeopardizing their eligibility for crucial government benefits like Medicaid and Supplemental Security Income (SSI). Approximately 61 million adults in the United States live with a disability, and a properly structured trust can provide financial security and peace of mind for both the individual and their family. The key lies in crafting the trust terms carefully to comply with specific program rules and ensure the beneficiary’s needs are met without disqualifying them from essential assistance.
What are the benefits of a special needs trust?
A special needs trust allows assets to be used to enhance the quality of life for the beneficiary – covering expenses like specialized therapies, recreation, uncompensated medical care, or personal care items – without impacting needs-based government benefits. Consider it a financial safety net that complements, rather than replaces, public assistance. “A well-drafted trust empowers individuals with disabilities and their families to plan for the future with confidence,” notes Steve Bliss, emphasizing the importance of professional legal guidance. Without a trust, any inheritance or asset accumulation above a certain threshold (currently $2,000 for SSI eligibility) could result in the loss of vital benefits. This proactive approach ensures that financial resources are available to improve the beneficiary’s life without creating a financial penalty.
What happens if I don’t create a trust?
Old Man Tiber, as he was known around the Escondido coffee shops, was a retired carpenter who suffered a severe stroke. He’d always been fiercely independent and hadn’t bothered with any formal estate planning. His daughter, Sarah, was left scrambling when he was declared permanently disabled and required extensive care. His modest savings, meant to supplement his Social Security, quickly became a problem. Because he didn’t have a supplemental needs trust, any attempt to use those savings for his care immediately threatened his Medicaid eligibility. Sarah found herself caught in a frustrating cycle: she wanted to provide her father with a better quality of life, but doing so meant risking his access to essential medical care. It was a heartbreaking lesson in the importance of proactive planning, and a situation Steve Bliss routinely helps families avoid.
How do I fund a trust for a temporary but worsening condition?
Funding a trust established for a potentially permanent disability requires careful consideration of timing and assets. You can initially fund the trust with current funds, such as savings or investment accounts. Life insurance policies, with the trust designated as the beneficiary, can provide future funding. It’s crucial to remember that there’s often a “look-back” period (typically five years for Medicaid eligibility) where any asset transfers made for the purpose of qualifying for benefits can be scrutinized. However, transfers made *before* the disability becomes severe, or those considered gifts for legitimate estate planning purposes, are generally permissible. Steve Bliss routinely advises clients on the optimal strategies for transferring assets into a trust while minimizing potential complications.
What changed when things went right?
A few years after the Old Man Tiber situation, a young woman named Maria came to Steve Bliss with a similar challenge. Her son, Leo, had been diagnosed with a progressive neurological condition that was initially considered temporary, but doctors warned it was likely to become permanent. Maria, remembering the story of Old Man Tiber, immediately sought legal counsel. Working with Steve Bliss, she established a supplemental needs trust and strategically transferred assets, ensuring Leo’s long-term financial security without jeopardizing his benefits. When Leo’s condition worsened and he became permanently disabled, the trust was already in place, seamlessly providing for his needs. Maria felt a profound sense of relief, knowing she had done everything possible to protect her son’s future. “It wasn’t just about the money,” she shared with Steve Bliss. “It was about knowing he’d be cared for, no matter what.” That’s the power of proactive estate planning and a well-crafted trust.
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About Steve Bliss at Escondido Probate Law:
Escondido 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 Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
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:
- living trust
- revocable living trust
- irrevocable trust
- family trust
- wills and trusts
- wills
- estate planning
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/oKQi5hQwZ26gkzpe9
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Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “What’s the best way to leave money to minor children?” Or “What happens to jointly owned property during probate?” or “Can a living trust help me qualify for Medicaid? and even: “Can bankruptcy eliminate credit card debt?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.