Special Needs Trust?

[Anonymous]

Does anyone have experience with special needs trust and things to watch out for / make sure of? This is in DC but funds coming from a MD relative. They are working with an attorney that supposedly has SN trust experience. The child has likely permanent developmental needs and will likely need state assistance later (and does now too, but child is young now). Thanks!

[Anonymous]

I have a teeny bit of experience in dealing with this with an older relative where it was not set up properly, affected his social security disability eligibility, and was a big, expensive mess. Find a lawyer specializing in this kind of thing if at all possible. A good trust and estates attorney should be able to handle it or refer you to someone who can.

[Anonymous]

Anonymous wrote:I have a teeny bit of experience in dealing with this with an older relative where it was not set up properly, affected his social security disability eligibility, and was a big, expensive mess. Find a lawyer specializing in this kind of thing if at all possible. A good trust and estates attorney should be able to handle it or refer you to someone who can.

Oops, so sorry, I didn't read your whole OP. Make sure you and the relative setting it up understand how this affects the child's eligibility for future benefits. That was the biggest pitfall for my uncle.

[Anonymous]

Make sure trust is set up wherever the trustee - not necessarily the beneficiary - lives.

Agree you need someone with this specific expertise.

[Anonymous]

The Arc for wherever the relative giving the money lives can help with connecting he or she with an appropriate expert:
http://www.thearcmd.org

If they are in Montgomery County, MCPS offers free transition services meetings. Nov. 9 at CESC Auditorium (Carver Educational Services Center) will cover financial planning.

[Anonymous]

We used Matthew Bogin to set one up. Simple process, not too expensive http://www.lawforchildren.com/about

[Anonymous]

Anonymous wrote:Make sure trust is set up wherever the trustee - not necessarily the beneficiary - lives.

Agree you need someone with this specific expertise.

What is the thinking on why it should be set-up where trustee lives? To add to the discussion (OP here), yes trustee is in MoCo.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Make sure trust is set up wherever the trustee - not necessarily the beneficiary - lives.

Agree you need someone with this specific expertise.

What is the thinking on why it should be set-up where trustee lives? To add to the discussion (OP here), yes trustee is in MoCo.

For ease of reporting to the court on distributions that have been made and so forth we were advised to set it up here. Again could very depending on the jurisdictions involved.

[Anonymous]

OP - I would second the advice that you and the relative go to a lawyer who does have experience in special needs trusts and not just a trust and estate lawyer. If the funds will be given now as opposed at time of death, then you would need to set up a bank account with the trust name on it. In many ways having such a financial vehicle with some money in it is just good sense in case of a common disaster. I would think that for now you and your husband would be the co-trustees with perhaps an alternate trustee listed in the event of a common disaster.

Since you are looking into this, it also makes sense for you to be sure that you have a will and guardianship set in place for DC and all minor children. Within your estate planning you would note the percentages that would go to the SNT for your child with the special needs and the percentage to other children. A SNT can also list beneficiaries for any remaining balance upon the passing of the person for whom it was set up. This is an important caveat that the new ABLE account does not have and there is a limit to how much could be in an able account.

The usual advice is that the Executor of your estate need not be the person who will be Trustee of the Special Needs Trust. If the estate now or in the future is a certain amount, one can have a bank officer serve as trustee I think or as a fallback trustee if no one else. Again, this is an area that will probably be one for review every few years. Everyone's situation is unique.

[Anonymous]

Thanks all so far. Any tips on issues that have caused SN to not financial qualify for state assistance post age 18 that we should watch out for?

[Anonymous]

Anonymous wrote:Thanks all so far. Any tips on issues that have caused SN to not financial qualify for state assistance post age 18 that we should watch out for?

This is what you have an attorney for!

[Anonymous]

Are you in Maryland? The maryland attorney generals office will review a special needs trust to make sure it complies with the regulations. meets the requirements.
http://www.marylandattorneygeneral.gov/Forms/Attorney_Review_checklist.pdf

[Anonymous]

Anonymous wrote:

Anonymous wrote:Thanks all so far. Any tips on issues that have caused SN to not financial qualify for state assistance post age 18 that we should watch out for?

This is what you have an attorney for!

Yes, exactly. Listen to your attorney.

And I would see a highly rated estate attorney. They will take you through your whole estate and you will continue that relationship long term.

You don't have to look for 'special needs experience'. Any good estate attorney will have that experience as he/she will have dealt with many families and plenty of them will have SN family members.

Look for quality and experience in an attorney. I would steer very clear of anyone who steers you toward any specific financial planners. If you ask and they have recommendations - ok. If they talk about a financial group or find a lot - not good.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Thanks all so far. Any tips on issues that have caused SN to not financial qualify for state assistance post age 18 that we should watch out for?

This is what you have an attorney for!

Yes, exactly. Listen to your attorney.

And I would see a highly rated estate attorney. They will take you through your whole estate and you will continue that relationship long term.

You don't have to look for 'special needs experience'. Any good estate attorney will have that experience as he/she will have dealt with many families and plenty of them will have SN family members.

Look for quality and experience in an attorney. I would steer very clear of anyone who steers you toward any specific financial planners. If you ask and they have recommendations - ok. If they talk about a financial group or [/b]fund [b]a lot - not good.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Make sure trust is set up wherever the trustee - not necessarily the beneficiary - lives.

Agree you need someone with this specific expertise.

What is the thinking on why it should be set-up where trustee lives? To add to the discussion (OP here), yes trustee is in MoCo.

For ease of reporting to the court on distributions that have been made and so forth we were advised to set it up here. Again could very depending on the jurisdictions involved.

It's usually state law. 20 years ago my DH and I had our wills and estate work done up by a D.C. lawyer. We named a D.C. resident as our executor. WE live in VA. D.C. lawyer didn't know the law. We had to redo the wills and name a virginian as executor.