Franklin Special Needs Trust Lawyer

Franklin Special Needs Trust Attorney

Planning for the future of your estate can be difficult. It can be especially challenging when you have a family member with a physical or mental disability who requires government benefits for their care and support. One option for many families is a special needs trust, also called a supplemental needs trust. A skilled Franklin special needs trust lawyer, Shanone Emmack, at Emmack Probate and Estate Law Group can determine if this is a good choice for the needs of your family.

In Tennessee, about 1 in 3 adults have a disability. These individuals often require support with mobility, self-care, and independent living. Many disabled adults will require government benefits like Medicaid and Supplemental Security Income (SSI) at some point to financially support themselves. However, this limits how much income they can make while continuing to receive benefits.

An experienced Trust litigation lawyer can help you establish a special needs trust that allows someone with physical or mental disabilities, chronic illness, or other special needs to have supplemental financial support without compromising their government benefits. This specific kind of trust can be used to provide for the disabled heir’s needs beyond the basics, like housing and food.

Benefits of a Special Needs Trust

A special needs trust can give a family peace and reassurance, knowing that there is a plan in place to meet their loved one’s extra support needs. This kind of trust can provide other added benefits to grantors, beneficiaries, and their families.

• Supplementing a fixed income. Disabled adults of working age are employed at less than half the rate of non-disabled adults. When an individual gets their primary financial support from government benefits like SSI, there is often not enough left over for unforeseen expenses that insurance doesn’t cover. They may also like money for other things, like vacations, classes, or leisure items. A special needs trust can cover many of these to sustain and improve the beneficiary’s quality of life.
• Works with Medicaid and SSI benefits. Adults with disabilities are more than twice as likely to use Medicaid as adults without disabilities, and almost a third receive disability income from Social Security.  In some cases, earning income can mean being disqualified from obtaining government benefits, like Medicaid and SSI. Fortunately, the structure of a special needs trust does not interfere with these benefits.
• Tax benefits. Assets in a special needs trust are tax-deductible, which provides a benefit to the grantor and their family as well.
• Protecting assets. Some special needs trusts can protect assets from creditors or legal judgments, which provides additional stability for the beneficiary. In addition, the trustee has a legal obligation to use the funds as outlined in the trust, which minimizes the chances of financial abuse or exploitation of the beneficiary.
• Personalized terms. The terms of a special needs trust can be personalized to accommodate the existing and future support needs of the beneficiary.

What a Special Needs Trust Covers

A special needs trust is intended to supplement the beneficiary’s income. This means it is not intended as a primary source of income and should not be used to pay for basic necessities, like rent or mortgage payments, utility bills, or basic clothing needs. However, funds can be used to cover many expenses in the beneficiary’s life, including:

• Health. The funds from a special needs trust can maintain or improve the disabled person’s mental or physical health. Examples include medical treatments not covered by insurance, medical equipment and adaptive devices, mental health counseling and care, and transportation to doctor appointments and therapy.
• Education. This includes formal education at a school or university. It can also cover other forms of education, such as music or art lessons, that are tied to skill development. Education can be for adults as well as children, such as at the Columbia State Community College campus in Franklin. Transportation to educational activities is also covered.
• Maintenance. A special needs trust can sustain the person’s daily needs and quality of life, including clothing, personal care, household items, accessibility and safety home modifications, and accessible vehicles.
• Support. This includes recreation, travel, caregiver or respite care, legal fees, technology, and other expenses that improve the person’s independence, comfort, or well-being.

FAQs

How Much Does a Trustee of a Special Needs Trust Make?

In Franklin,TN a trustee of a special needs trust can charge a “reasonable fee.” Tennessee does not have a specific regulation for trustee fees, which can be a percentage of the trust assets, a flat fee, or an hourly rate. It depends on the scope and duties of the trustee, the size of the trust, the income it produces, and whether they are a professional or not. In general, this amount will be specified in the trust document.

How Do I Find a Trustee for a Special Needs Trust?

The right trustee is different for each situation. In some cases, it may be a family member. In others, it may be a financial or legal professional. Additionally, some people opt to use a trust protector who oversees the trustee’s actions. An experienced special needs trust attorney can help you consider all the important factors and determine who would be the most beneficial choice for a trustee in your specific situation.

What Is the Difference Between a Trust and a Special Needs Trust?

The difference between a trust and a special needs trust is that a trust is a general term for a wide range of legal arrangements to manage and protect assets, whereas a special needs trust has a very specific scope and set of requirements. In short, a special needs trust is always a trust, but not all trusts are special needs trusts.

What Are the Downsides of a Special Needs Trust?

There can be several downsides to a special needs trust:

• It can be expensive to set up and administer.
• There may be tax implications
• The beneficiary will not have control over the assets themselves; rather, they have to work through the trustee.
• When the beneficiary dies, the remainder of the trust must often be paid back to Medicaid.

It is important to weigh these factors against the benefits when deciding what’s right for your family.

Start Planning Your Trust With the Help of Our Special Needs Trust Lawyer Team

At Emmack Probate and Estate Law Group, our skilled legal team knows from experience that details matter in creating and administering a special needs trust. Contact our office today to discuss your needs.