maryland attorney who manage special needs trust

Full Answer

Who controls the money in a special needs trust?

trusteeLike all trusts, a special needs trust is organized around the people in three roles: a settlor (also called grantor) who creates the trust and provides the money. a beneficiary (the person with the disability), and. a trustee, who manages the money for the sole benefit of the beneficiary.

What are the disadvantages of a special needs trust?

Disadvantages to SNTCost. Annual fees and a high cost to set up a SNT can make it financially difficult to create a SNT – The yearly costs to manage the trust can be high. ... Lack of independence. ... Medicaid payback.

How do you break a special needs trust?

If you're seeking to dissolve the trust to ensure the beneficiary is eligible for government benefits, prepare to argue that point. Contact the court where the trust document was registered. In many states, probate courts have jurisdiction over trusts. In other states, trusts are overseen by an orphan's court.

What are the responsibilities of a trustee of a special needs trust?

Not only must the trustee spend trust funds in the best interest of the beneficiary (your loved one with a disability), the trustee must also keep up to date on SSI and Medicaid laws, invest trust funds, file taxes, maintain records, and more. This article briefly describes the duties of the trustee.

What can money in a special needs trust be used for?

The person serving as trustee of the special needs trust can usually pay for anything for the person with special needs, as long as the purchase is not against public policy or illegal and does not violate the terms of the trust.

What is the difference between a trust and a special needs trust?

Differences Between Trusts The main difference between trusts is how they were funded. In other words, who owned the assets to create the trust? In a special needs trust, the money came from a person with disabilities. The money can be from an inheritance or personal injury settlement.

Can a trustee borrow money from a trust?

While trust documents may permit beneficiaries to take loans from the trust as a type of distribution, the trustee himself cannot take or borrow money from the trust, as it creates a conflict of interest.

Can Social Security benefits be deposited into a trust account?

Social Security must be paid directly to the beneficiary. It cannot be paid to a trust. If you are receiving Social Security by direct deposit, you should leave the account that receives the payments outside of your trust.

Is a special needs trust a grantor trust?

A first-party SNT is generally classified as a “grantor trust.” This tax classification means that all of the items of income, deduction and credit generated by the SNT should be reflected on the personal income tax return of the beneficiary with the disability.

Who can be the trustee of a special disability trust?

A special disability trust must have 2 or more trustees acting jointly, which includes friends and family, except where a professional trustee is appointed. If a corporation is a trustee, the corporation must have 2 or more directors who comply with the trustee requirements.

Do I need a professional trustee?

Having a professional trustee is not legally necessary, but it can be an enormous advantage. Professional trustees are usually well acquainted with trustee duties and what action has to be taken to satisfy those legal responsibilities.

How does an able account work?

ABLE Accounts allow individuals with disabilities to save and invest money without losing eligibility for certain public benefits programs, like Medicaid, SSI, or SSDI. Earnings in your ABLE Account are not subject to federal income tax, so long as you spend them on “Qualified Disability Expenses” (see below).

Can an elder get medicaid in Maryland?

In Maryland, one tool that may help an elder become eligible for Medicaid benefits is a Special Needs Trust or Supplemental Needs Trust. At The Law Office of Henry Nash in Rockville, Maryland, ...

Who is Henry Nash?

Attorney Henry Nash has extensive experience helping elders and their families work through the complex laws and concerns inherent in all types of elder law matters, including estate planning and Medicaid planning.

Maryland and D.C. Special Needs Attorney Helping You With Special Needs Planning

Attorney Morris Klein can help with all aspects of special needs planning, including:

Special Needs Trusts

A special needs trust allows property to be held for a disabled person without making the person ineligible for public benefits such as Supplemental Security Income (SSI) and Medicaid.