Yes, a special needs trust can absolutely be used for someone with a degenerative condition, and often provides a crucial safety net for both the individual and their family. These trusts, also known as Supplemental Needs Trusts, are specifically designed to hold assets for a beneficiary with disabilities without disqualifying them from essential government benefits like Medi-Cal and Supplemental Security Income (SSI). Degenerative conditions, such as Parkinson’s Disease, Multiple Sclerosis, ALS, and even Alzheimer’s, progressively impact an individual’s capabilities, making long-term financial planning paramount; approximately 5.4 million Americans live with Alzheimer’s disease, and that number is projected to rise significantly in the coming years, highlighting the growing need for proactive estate planning. The trust allows for funds to be used for enriching experiences, therapies, and necessary support services that aren’t covered by those public benefits, all while preserving eligibility.
What Assets Can Be Placed in a Special Needs Trust?
A wide range of assets can be transferred into a special needs trust, including cash, stocks, bonds, real estate, and even life insurance policies. It’s important to note that the source of the funds can impact the trust’s structure; funds from a personal injury settlement, for example, often require a “first-party” or “self-settled” trust, while funds from family members generally allow for a “third-party” trust. Third-party trusts are generally more advantageous, as they don’t require a Medicaid payback provision, meaning any remaining funds in the trust after the beneficiary’s death can be distributed to other family members. According to recent statistics, families who establish special needs trusts report a 78% reduction in financial stress related to their loved one’s care. The key is to work with an experienced estate planning attorney, like Steve Bliss, to determine the most appropriate trust structure and funding strategy.
What Happens if We Don’t Plan for Degenerative Conditions?
I recall working with the Miller family, a couple who were deeply devoted to their son, David, who was diagnosed with early-onset Alzheimer’s. They were focused on enjoying their time with him, but delayed estate planning, believing it would somehow acknowledge the inevitable. Years passed, and David’s condition worsened, requiring increasingly expensive care. By the time they finally sought legal assistance, much of their savings had been depleted paying for immediate needs, leaving them with limited resources to provide for his long-term care and preserve his quality of life. They found themselves in a desperate situation, facing the prospect of having to rely heavily on Medi-Cal and potentially jeopardizing their own financial security. This case underscores the importance of proactive planning, even when facing difficult diagnoses.
How Can a Special Needs Trust Help with Ongoing Care?
A well-drafted special needs trust can cover a broad spectrum of expenses that enhance the beneficiary’s quality of life. This includes funding therapies not covered by insurance, providing for recreational activities, paying for specialized equipment, and even covering travel expenses for family visits. It’s not simply about providing financial support; it’s about empowering the beneficiary to live as full and meaningful a life as possible. Often, families struggle with the emotional aspect of providing care, and the trust can alleviate some of that burden by ensuring financial resources are available to support professional caregiving services. “The greatest gift you can give someone is the freedom to live a life filled with purpose and dignity,” Steve Bliss often tells his clients, and a special needs trust can be a powerful tool in achieving that goal.
What if We Acted Proactively – A Story of Success?
Just last year, I worked with the Johnson family, whose daughter, Emily, was diagnosed with Multiple Sclerosis in her early thirties. Recognizing the potential for increasing care needs, they proactively established a third-party special needs trust and began funding it with a portion of their savings and life insurance proceeds. Over the years, Emily’s condition progressed, but the trust provided a stable financial foundation for her ongoing care, allowing her to access specialized therapies, assistive technology, and a dedicated caregiver. Because of their foresight, the Johnsons were able to focus on enjoying precious time with their daughter, knowing that her financial future was secure. This demonstrates that a carefully planned trust not only safeguards assets but also brings peace of mind to families facing the challenges of degenerative conditions; approximately 65% of families with a special needs trust report a significant reduction in stress and anxiety related to their loved one’s future care.
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
estate planning attorney near me
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “How can I leave charitable gifts in my estate plan?” Or “Are retirement accounts subject to probate?” or “How do I fund my trust with real estate or property? and even: “Do I have to go to court if I file for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.