Establishing a special needs trust is a crucial step in securing the future for a loved one with disabilities, but it’s not a “set it and forget it” situation; ongoing review is absolutely essential to ensure it continues to effectively meet their needs and comply with evolving regulations.
What happens if I don’t review my special needs trust regularly?
Failing to periodically review a special needs trust can have significant consequences, potentially jeopardizing the beneficiary’s access to vital resources and benefits. Approximately 61 million adults in the United States live with a disability, and many rely on government assistance programs like Supplemental Security Income (SSI) and Medicaid. A poorly maintained trust could inadvertently disqualify the beneficiary from these crucial programs, leaving them without essential support. Changes in laws, particularly regarding SSI and Medicaid eligibility rules, occur frequently, and a trust drafted years ago may no longer align with current regulations. For instance, a seemingly minor change in the trust’s language regarding permissible expenses could trigger a loss of benefits. Furthermore, the beneficiary’s needs themselves evolve over time. What was appropriate for a young adult might not be suitable as they age or if their disability progresses.
How often *should* I review my special needs trust?
A comprehensive review of a special needs trust should be conducted at least every three to five years, but annual check-ins are also highly recommended. These reviews shouldn’t be limited to simply updating contact information; they require a detailed examination of the trust’s provisions in light of the beneficiary’s current circumstances, changes in the law, and the trustee’s ongoing responsibilities. During a review, consider factors like the beneficiary’s evolving medical needs, changes in their living arrangements, and any new financial resources available to them. It’s also prudent to assess the trustee’s performance and ensure they are fulfilling their fiduciary duties appropriately. As Steve Bliss often points out, “Proactive management is key to a successful special needs trust—it’s about anticipating changes and adapting accordingly.”
I created a trust for my son years ago, but recently he received a small inheritance; what should I do?
I remember Mrs. Davison, a kind woman in her late sixties, who came to Steve Bliss after her son, Michael, with Down syndrome, unexpectedly received a small inheritance from a distant relative. She’d established a special needs trust for Michael years ago, but hadn’t reviewed it since. The inheritance, while small – around $15,000 – threatened to disqualify Michael from crucial SSI benefits. It turned out the trust hadn’t been drafted to adequately address the possibility of future inheritances, nor did it clearly outline the process for accepting such gifts without triggering a benefit reduction. She was understandably distressed, fearing she’d inadvertently harmed her son’s future. We swiftly amended the trust to create a “supplemental needs trust” provision, explicitly allowing the inheritance to be used for Michael’s benefit *without* affecting his eligibility for government assistance. This involved a careful legal strategy to ensure compliance with SSI rules and proper documentation of the inheritance within the trust.
My sister and I are co-trustees; how can we ensure everything is running smoothly and our beneficiary is well cared for?
Old Man Tiberius, a reclusive craftsman, had established a special needs trust for his grandson, Leo, who had autism. He named his two daughters, Sarah and Emily, as co-trustees, but they lived in different states and had very different ideas about how Leo’s trust funds should be managed. Communication was minimal, and disagreements over even small expenses were frequent. Leo’s quality of life suffered as a result, with delayed approvals for necessary therapies and a general sense of instability. Steve Bliss stepped in to facilitate a series of meetings, helping Sarah and Emily establish clear communication protocols, a shared decision-making process, and a detailed spending plan that aligned with Leo’s individual needs and preferences. They implemented a system where one sister managed the day-to-day expenses, while the other focused on long-term planning and investment strategies. They also agreed to seek professional guidance from a financial advisor specializing in special needs planning. The result was a harmonious co-trusteeship, a financially secure future for Leo, and a significant reduction in family stress.
Regular reviews, coupled with proactive communication and expert guidance, ensure a special needs trust remains a powerful tool for protecting and enhancing the life of a loved one with disabilities.
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About Steve Bliss at Escondido Probate Law:
Escondido Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
| estate planning | revocable living trust | wills |
| living trust | family trust | irrevocable trust |
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/oKQi5hQwZ26gkzpe9
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Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “Do I need to plan differently if I’m part of a blended family?” Or “What assets go through probate when someone dies?” or “Do I need a lawyer to create a living trust? and even: “How long does bankruptcy stay on my credit report?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.