If you are the guardian of a person with special needs, you know how crucial government benefits like Supplemental Security Income (SSI) and Medicaid are. But what happens when a person with special needs receives money that pushes them out of eligibility for these benefits?
Implementing a special needs trust can prevent this. Holding the money in a trust preserves eligibility as it is no longer directly owned by the beneficiary but still allows the beneficiary to use it.
The skilled special needs trust lawyers at Peakstone Law Group, formerly known as Patterson Weaver, are available to help you provide for your loved one. Call us or contact us online today for an appointment to discuss your options for taking care of your family.
Why You Need a Special Needs Trust Lawyer
Setting up a special needs trust can be a complicated process. If the trust is not established correctly, it could still lead to benefit disqualification, affecting housing and medical needs. Our experienced special needs trust lawyers can create a trust that meets state and federal requirements, allowing your loved one to retain the public benefits they need.
At Peakstone Law Group, we understand the importance of maintaining benefits while receiving monetary gifts. When you choose us to be your attorney for a special needs trust, you are choosing:
- Experienced attorneys who know Colorado law – We have a strong track record of successful probate and estate planning, and we deliver results.
- Tailored strategy for your family – We take the time to understand your family’s needs to create a trust that fits your unique goals.
- Assistance in maintaining government benefits – We’ll help you continue to maintain your loved one’s eligibility for government benefits while setting up your assets in such a way that they can be used for that person’s benefit.
We will act with the utmost respect and professionalism your case deserves. But don’t just take our word for it. Read what our past clients have to say about their experiences with our law firm. For example: “My experience was exceptionally great. A very well-organized firm, experienced and professional. Customer service was excellent and my attorney’s (Troy and Patterson) were great… I highly recommend Peakstone Law firm.” – P.S.
Types of Special Needs Trusts
When you set up a special needs trust, you must be careful about which type you’re choosing to put in place. There are three primary trusts to keep in mind:
- First-party special needs trust – The beneficiary provides funding for a first-party trust through their assets, which include savings, inheritance money, or settlement proceeds. Beneficiaries can access these funds for their needs through the trust without affecting their eligibility for essential benefits. Colorado law mandates that these trusts remain irrevocable so that any leftover funds after the beneficiary’s death go toward settling the state’s Medicaid claims. The trustee manages the trust by following strict guidelines, which help maintain the beneficiary’s eligibility for government benefits.
- Third-party special needs trust – A third-party trust is established by someone who is not the special needs beneficiary, like a family member, to fund the beneficiary’s needs without jeopardizing their benefits from SSI and Medicaid. Benefit eligibility remains intact because the beneficiary does not own the assets. Supplemental needs such as education and medical expenses outside government assistance coverage and entertainment costs are included in the trust coverage. The trust structure is permanent and must follow legal requirements. Medicaid does not demand repayment of remaining trust funds once the beneficiary passes away, which allows greater financial freedom for their family members.
- Pooled special needs trust – This trust permits several special-needs individuals to combine their assets together yet keeps separate accounts for each beneficiary. A nonprofit organization typically oversees this trust by managing investments and administrative tasks. The trust provides funds to beneficiaries while preserving their qualification status for SSI and Medicaid benefits. The trust allows beneficiaries to use available funds for additional needs, including healthcare costs, educational fees, and leisure activities. Beneficiaries might encounter a Medicaid repayment obligation or need to repay the nonprofit organization.
Our Colorado Springs trust lawyer is ready to help you assess your financial situation and eligibility for government benefits to determine which option is best for you and your family.
How Our Special Needs Trust Lawyers Can Assist You
At Peakstone Law Group, we tailor our strategies to fit you and your family’s needs and will establish a special needs trust that works for you. We can provide:
- Legal knowledge to make sure your trusts are compliant with Colorado law
- Customized trust planning
- Ongoing trust administration support
- Peace of mind
With us, you will have access to a dedicated team of lawyers who don’t stop once the trust is established. We will provide support throughout the trust’s life, adapting the trust to when life changes occur to keep your loved one’s finances secure.
The Process of Setting Up a Special Needs Trust
The process of setting up a special needs trust consists of four main parts:
- Initial consultation
- Drafting the trust
- Funding the trust
- Ongoing management
These steps are made simple when you have the right special needs trust attorney to guide you. It’s easy to get lost in the drafting stage or to forget to review the trust regularly to ensure it meets your needs.
Common Mistakes to Avoid with a Special Needs Trust
Although establishing a special needs trust can provide financial relief, it’s essential to remember that mistakes can be made. The most common mistakes to avoid are:
- Naming the wrong trustee
- Mishandling funds
- Failing to fund the trust properly
- Not updating the trust over time
All of these pitfalls could lead to the loss of government benefits. Our lawyers are ready to help you avoid mistakes when creating, funding, and administering a special needs trust.
Why Hiring a Special Needs Trust Lawyer is Essential
A special needs trust is a complicated legal document that can save you and your loved one numerous headaches, but only if it’s set up correctly and managed correctly over time. Hiring a special needs trust lawyer will take that burden off your shoulders.
With Peakstone Law Group, you’ll have experienced estate planning, probate, and trust administration lawyers on your side. We offer client-focused, transparent legal guidance with a proven track record in securing financial stability for families.
If you’re considering a special needs trust in Colorado Springs, our attorneys will guide you through every step.
Contact us today for a free consultation and take the first step toward securing your special needs dependent’s financial security.