Special Needs Trust Lawyer in Colorado Springs

Planning for a Loved One’s Needs With a Special Needs Trust

If you are the legal 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, such as from a personal injury settlement, that pushes them out of eligibility for these benefits?

Implementing a special needs trust — sometimes called a disability 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, LLC, are available to help you provide for your loved one. Call us at 719-689-8861 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, and it’s essential to understand the implications. This process transfers the disabled person’s assets to the trust, and only the trustee can manage and distribute the assets. 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, 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. Medicaid income and resource limits vary by state, and working with a Colorado attorney can ensure legal compliance when establishing trusts to avoid issues in the future
  • Tailored strategy for your family. We take the time to understand your family’s needs to create a trust that fits your unique goals. We listen to your story to determine current and future care needs and use a customized approach. One of the benefits of trusts is that they can often offer more flexible terms and provisions, such as for successor trustees, to ensure you’re prepared for whatever the future brings
  • Assistance in maintaining government benefits. We understand how essential government benefits can be when a loved one needs more care. 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:

“My experience was exceptionally great. A very well-organized firm, experienced and professional. Customer service was excellent, and my attorneys (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. Each type has different processes and rules, and choosing the wrong type could impact whether your loved one qualifies for programs like SSI and Medicaid. 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, such as 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 Trust

Pooled trusts, including self-settled pooled trusts, can be a helpful option for those with disabilities. A pooled 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 health care costs, educational fees, and leisure activities. Beneficiaries might encounter a Medicaid repayment obligation or need to repay the nonprofit organization.

If you have questions about which type of trust is best for your situation or need more information on the differences between them, call Peakstone Law Group, at 719-689-8861. Our Colorado Springs trust lawyers are 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, 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. Special needs trusts are complex, and even a simple mistake or typo could result in being ineligible to receive government benefits. Our attorneys are up to date on the most recent rules for special needs trusts and benefits eligibility.
  • Customized trust planning. When you work with our firm, we use a variety of factors, such as your loved one’s age, future care needs, and income sources, to determine the correct type of trust and larger estate planning strategies.
  • Ongoing trust administration support. A trust is not a create it and forget it tool. It requires ongoing administration, and our attorneys are prepared to help you understand documentation and reporting compliance and how to respond to questions from government agencies.
  • Peace of mind. Having a disabled child or other loved one means that you have to take extra care when it comes to ensuring they’re provided for in the future. A special needs trust can be part of a broader plan to protect their assets and benefits eligibility while also giving you the peace of mind that they’ll have the care they need even after you’re gone.

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

A special needs trust can provide regular monthly cash payments and other benefits, but it’s crucial to set it up correctly. 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 in Colorado

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 by calling our Colorado Springs office at 719-689-8861 to schedule a free consultation and take the first step toward securing your special needs dependent’s financial security. An experienced estate planning attorney can walk you through your options and ensure everything complies with federal and state law.