The Benefits Of Creating A Special Needs Trust
If this third party special needs trust is created during life, it’s in effect immediately, when you sign it. Trustees and successors can get training and experience. “how does this thing work?” The first thing I suggest doing is get it approved by Medicaid. Submit it to Medicaid and you’ll get this wonderful little letter that says we’ve reviewed your trust and we approve it. It meets the qualifications of a special needs trust. Some attorneys don’t want their clients doing that, I can see the arguments why, what business of it is Medicaid’s if this trust holds ten dollars. When we create the trust that’s all the assets that are in there, ten dollars. That’s not going to make or brake anything, but I think it’s valuable to have that letter from Medicaid saying that we’ve reviewed your trust and we approved it. I usually encourage my clients to submit the trust get it approved, get that nice little letter that you can stick on the inside of the front cover of the trust. So in twenty or thirty years, when money actually flows into the trust from life insurance, from a will, from a trust, and Medicaid says we don’t like this trust, you have that letter that says you read it twenty years ago and said it was fine. With this trust already in existence, other people can leave assets to it as well. Grandparents friends, family, all of those issues that I pointed out at the beginning can be resolved if this trust is already in existence, not being left up to a will to be created. Can you guess what my preference is? My preference is create this trust during life, if you have a child with a known disability that you know is more than likely going to need eligibility for government benefits, I don’t see a downside to creating that trust now.
Nadler Biernath LLC assists clients in the Atlanta, Georgia area and throughout Georgia including Kennesaw, Alpharetta, Roswell, Marietta, Buckhead, Johns Creek, Duluth, East Cobb and Dunwoody.