Third-Party Special Needs Trust Lawyer in Iowa
If you’re responsible for a loved one with special needs, you may wonder how they will support themself after you pass away. Special needs planning is a branch of estate planning dedicated to providing resources and support for individuals with special needs. Setting up a third-party special needs trust as part of this process can give you peace of mind that your loved one will have financial support once you’re gone.
The attorneys at Huizenga Law Firm, P.C., are well versed in a wide range of estate planning strategies to support those with special needs. Contact a third-party special needs trust lawyer today for more information.
What Is a Third-Party Special Needs Trust?
A third-party special needs trust is a financial vehicle that enables you to gift money to a person with a disability. This flexible trust allows you or any other family members or friends to set aside money for an individual with special needs to use at a designated time.
You can create a third-party special needs trust to establish an inheritance after you pass away, ensure that life insurance proceeds go to your loved one, or just set aside funds to which you want your loved one to have access. You can specify when and how the beneficiary gains access to the assets in the trust and any other relevant terms in the trust document.
Third-Party vs. First-Party Special Needs Trusts
A first-party special needs trust is another estate planning tool for people with disabilities. If your loved one with special needs has come into some money, such as an inheritance from another family member, they may no longer qualify for governmental benefits.
Instead of keeping that money in an account, they can create a first-party special needs trust to hold the money and restrict it to needs-based purposes, such as groceries or rent. The main difference between first- and third-party special needs trusts is the funding source; first-party trusts use the trust creator’s own money, while third-party trusts use another source.
How Can Huizenga Law Firm, P.C., Help?
Third-party trusts can give you peace of mind that your loved one will have access to financial support when they need it. But without careful planning and the help of a third-party special needs trust lawyer, this type of trust could also reduce your loved one’s access to governmental benefits.
If an individual with special needs qualifies for Supplemental Security Income because of a financial need, gifting them money in a trust could make them ineligible. The right legal professional can help you lay out strict trust terms that minimize any impacts on the individual’s governmental benefits. For instance, an attorney can specify that the beneficiary only gains access to a certain amount of money at a time or after your death.
The right firm can review your circumstances and recommend suitable special needs planning tools.
Contact a Reputable Iowa Third-Party Special Needs Trust Lawyer
If you need assistance setting up a special needs trust, Huizenga Law Firm, P.C., can help. Contact the firm today at 712-737-3885 to book a call with an estate planning attorney in Orange City, IA.