A Jacksonville Special Needs Planning Attorney Will Help You Plan for Your Loved One’s Future
Having a loved one with special needs often requires extra planning to meet their current and future needs. A well-thought-out special needs plan maximizes the types of programs a person with special needs can qualify for while protecting any savings or other sources of income they may have. Such a plan requires a Jacksonville special needs planning attorney who understands this area of the law and their client’s particular needs and goals. Dale Dixon at Dixon Law takes the time to get to know his clients to ensure they obtain the plan they need.
Special Needs Trusts
Trusts are a major part of almost all special needs plans. They allow a person with special needs to receive funds and still qualify for certain types of government programs. These funds may come from any number of sources, including an inheritance, proceeds from a lawsuit, or a gift. These types of trusts are sometimes referred to as “supplemental needs” trusts, as they are not intended to be the special needs person’s main source of income. Instead, these funds are to be used to supplement assistance already being received from governmental programs. Funds in a special needs trust are often used for clothing, educational expenses, and private companion services.
Listed below are a number of different types of special needs trusts that our Jacksonville special needs planning attorney have seen used more commonly than others.
First-Party Special Needs Trusts
A first-party special needs trust is funded with money that the special needs person owns. For this very reason, they are often referred to as “self-settled” trusts. They are set up by a family member, guardian, or the court, and any funds they contain can only be used for the person with the disability.
First-party trusts have a mandated “payback” provision which states that upon the death of the person receiving the funds from the trust (beneficiary), the assets left in the trust can be used to recompense Medicaid for any benefits they provided.
Third-Party Special Needs Trusts
A third-party special needs trust is funded by someone other than the special needs person. Typically, this person is a parent, sibling, or grandparent. They can be established through a will and are more popular than first-party special needs trusts because they do not have a payback provision. These types of trusts are flexible and can be amended.
Speak With A Jacksonville Special Needs Planning Attorney
If you have a loved one with special needs and want to be certain their needs are met now and down the road when you may not be here, you need an effective special needs plan. Contact Dale Dixon at Dixon Law. He is a Jacksonville special needs planning attorney with the experience and knowledge you are looking for and can be reached via our contact page.