Special Needs Trusts
Special needs trusts are important legal instruments. The trust allows financial resources to be set up for individuals with disabilities or who are otherwise unable to care for themselves.
This type of trust is often created by a parent, grandparent or other family member for the benefit of a child or grandchild with significant disabilities or who has suffered injuries that leaves them lacking legal capacity to care and provide for themselves.
With a special needs trust, the grantor can ensure that their loved ones have the financial resources they will need for their care and support in the future.
A Powerful Tool, But Complex
These types of trusts are very useful and a powerful planning tool for individuals with disabilities or another incapacity, but they are complex, and it is important that they be created properly to ensure that they operate correctly and achieve your goal of protecting the future of a loved one with disabilities.
I am Memphis-based attorney Mike Parham. I began my legal practice to help meet the unique estate planning needs of individuals and families throughout Tennessee. I can help you understand how a special needs trust can help, and I will walk you through the details of your various options for establishing such a trust.
First Or Third-Party Special Needs Trusts
Special needs trusts can be either a first-party or a third-party trust. A first-party or self-settled trust is created by the beneficiary, such as might occur if they suffered catastrophic injuries in a car accident and received a verdict or settlement. This money would be used to fund the trust to provide for their future needs.
A third-party trust is typically created by a loved one, like a parent for the benefit of their child with disabilities. How these trusts are created, funded, taxed and how any remaining assets would be distributed after the death of the beneficiary can differ greatly.
I can help you with these issues, explain how different trusts work, and advise you on the type of special needs trust that would be most beneficial for your specific circumstances.
Contact A Lawyer For Help With Special Needs Trusts
Special needs trusts are an important way to protect your loved ones. It is essential that these trusts are properly prepared to ensure they will function correctly. To speak with me about your estate planning options, please call 901-617-1948 or contact me online to schedule an initial consultation.