When do you need a special needs trust

Tom Olsen: Holley, let's talk about that because special needs trust is something that we do here at the Olsen Law Group and who would we be using a special needs trust for Holley?

Holley Knapik: Typically what we've encountered is an adult, we've encountered adults under 65 that are receiving government benefits based on income and they're about to receive a very large settlement or an inheritance and in order for them to maintain the government benefit, the inheritance or settlement monies must be placed in that special needs trust. It is an actual trust that's established, there's a trust account that is created and the monies must go into that account, but we have done for under 65, over 65.

Typically it's a situation where someone's about to come into a lot of money, but that money which should just be used for their continued care would also force them off of the benefit that they're entitled to currently through the government.

Tom: Very well said Holley, really you're saying two situations where the person that's on governmental benefits they got money. One we did recently where they were in an automobile accident, they got us a settlement [crosstalk]. Again that settlement would've caused them to lose their governmental benefits so we had to create a special needs trust for them.

Holley: Exactly.

Tom: The other is where mom or dad has passed away and they've left money to the child and because they're on governmental benefits, those benefits would end so we had to put money into the special needs trust. On both of those situations, we want to make it clear that, that money is the child continues to get governmental benefits and get the benefit of this money and the special needs trust, but when the child passes away what happens to that money?

Holley: Typically we can name beneficiaries, but sometimes the beneficiary is the state.

Tom: That type of special needs trust that money would have to-- Anything that's left over would have to first be used to reimburse the state for the governmental benefits. That's one special needs trust under those circumstances, but there's other kinds as well that might have some better benefits depending on what your situation is. We're the Olsen Law Group in Orlando and by the way we do all kinds of estate planning for people, wills, trust, avoiding probates, special needs trust, real estate. People buying and selling homes all the way from contracts through closings, protecting your life savings from nursing homes. We do it all here at the Olsen Law Group for clients throughout the state of Florida.

We do offer a free initial consultation to talk about your estate planning Monday through Friday and we do those appointments on Saturday as well, we can do them by phone, Zoom, or in person. Call the Olsen Law Group anytime to schedule your appointment including right now 407-423-5561 or check out our website olsenlawgroup.com. We're going to take a break we'll be back in just a few minutes.

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