Thoughtful financial planning helps protect a loved one with disabilities now and in the future. A Texas special needs trusts lawyer can help you create a trust that protects assets while preserving eligibility for basic government benefits like Supplemental Security Income (SSI) and Medicaid.
At Marc Whitehead & Associates, we have over 30 years of experience helping individuals and families navigate complex legal and financial matters, including disability benefits and estate planning.
Our Texas wills and trusts lawyers understand the challenges involved in securing long term care and financial stability for individuals with disabilities and can guide you through the process with confidence. Call us today to learn about your options.
What Does a Special Needs Trust Mean?
A special needs trust (SNT) helps safeguard assets for individuals with disabilities while preserving their access to government benefits. Many individuals with disabilities rely on programs like Supplemental Security Income (SSI), Medicaid, and CHIP (Children’s Health Insurance Program), which have strict income and asset limits.
Without proper planning, receiving an inheritance or financial gift could disqualify them from their benefits. A special needs trust allows funds to be set aside for a person’s supplemental expenses, such as:
- Medical treatments that Medicaid doesn’t cover
- Education and job training
- Assistive technology and mobility aids
- Home modifications
- Recreational and social activities
- Personal care assistance
By placing assets in a trust rather than directly in the beneficiary’s name, you can enhance the quality of their life without disrupting their eligibility for government aid.
How Our Texas Special Needs Trusts Attorneys Can Help You
Creating a special needs trust involves complex legal and financial considerations. Working with an experienced attorney ensures the trust is structured correctly and aligned with state and federal regulations.
At Marc Whitehead & Associates, we provide:
- Personalized legal guidance: Tailoring the trust to your family’s needs
- Help with trust funding: Verifying that assets are transferred properly
- Protection of disability benefits: Keeping eligibility intact
- Trustee education: Helping trustees understand their responsibilities
Our firm has over three decades of experience assisting families with estate planning, disability claims, and special needs trusts. We are committed to helping you secure your loved one’s future with well-structured legal solutions.
Do You Need a Lawyer to Set Up a Special Needs Trust?
While it is possible to draft a trust without legal help, errors in wording or structure could result in unintended consequences, such as loss of government benefits or mismanagement of assets.
When our experienced lawyers handle your case, we will ensure:
- The trust complies with Texas laws.
- Assets are properly transferred and protected.
- Beneficiaries receive the maximum benefit from the trust.
Additionally, we can help coordinate the trust with your overall estate plan to ensure consistency with wills, powers of attorney, and other financial documents.
Types of Special Needs Trusts in Texas
There are different types of special needs trusts, each with specific rules and advantages. Our special needs trusts lawyers in Texas will help you determine which type is best for your situation.
First-Party Special Needs Trust
A first-party special needs trust (SNT) is funded with assets that belong to the beneficiary, including:
- An inheritance
- A settlement from a personal injury case
- Social Security back pay
This type of trust is subject to Medicaid payback rules. This means that once the beneficiary dies, any funds that are left over must be used to reimburse Medicaid for the services it provided.
Third-Party Special Needs Trust
A third-party SNT is created by a person other than the beneficiary, such as a parent or legal guardian or a grandparent. They also put money into the trust. This type of trust is commonly used in estate planning to protect the financial security for a loved one with disabilities.
Unlike a first-party trust, it is not subject to Medicaid payback rules.
Pooled Special Needs Trust
A nonprofit group manages a pooled SNT. This means it pools assets from more than one beneficiary while keeping individual accounts separate. This option is often used when there is no suitable individual to serve as a trustee or when the amount of assets is smaller.
Why a Special Needs Trust Is Important for Your Family
Without a special needs trust, a financial gift or inheritance could cause a loved one to lose access to important government benefits. Many families assume that leaving money directly to a child with disabilities is helpful.
However, without proper legal planning, their long term stability could be unintentionally harmed. Our Texas trusts lawyers for special needs planning can:
- Structure financial support without disqualifying benefits
- Choose the right trustee to manage funds responsibly
- Ensure assets are used for approved expenses
- Provide long term financial security for your loved one
At Marc Whitehead & Associates, we understand the challenges families face when planning for a loved one’s future. We work closely with clients to create customized special needs trusts that meet their unique goals.
Who Can Serve as a Trustee?
Choosing the right trustee is crucial for managing a special needs trust properly. The trustee is responsible for overseeing funds, making distributions, and ensuring compliance with federal and state laws.
Your choices include:
- A family member or friend: Someone who understands the beneficiary’s unique needs can oversee their financial well-being.
- A professional trustee: A bank, trust company, or financial institution with experience can manage trusts and ensure legal compliance.
- A nonprofit group: Some pooled special needs trusts are managed by nonprofit groups, offering professional oversight while keeping costs lower.
We can help you choose the best trustee for your situation and confirm that they understand their legal obligations.
Call Us: Our Texas Special Needs Trusts Lawyers Can Help You
We understand it feels overwhelming to plan for your family member’s future, but that’s why we’re here.
A Texas special needs trusts lawyer at Marc Whitehead & Associates can help you protect assets, preserve government benefits, and provide long term security for a family member with disabilities.
We are dedicated to helping families create strong legal plans that support their loved ones’ futures. Call us today and find out how we can help you set up a special needs trust in Texas.