Secure the Future: Special Needs Trust

Services for Your Loved Ones

Planning for the future of a loved one with special needs requires careful thought, compassion, and expert guidance. A Special Needs Trust is a powerful tool designed to ensure that your loved one is financially supported while preserving their eligibility for essential government benefits, such as Medicaid and Supplemental Security Income (SSI).

Special Needs Trust – The Basics

A Special Needs Trust is a specific type of legal trust designed to support individuals who are physically disabled, mentally disabled, or chronically ill while ensuring they remain eligible for crucial public benefit programs like Medicaid and Supplemental Security Income (SSI). This trust provides supplemental financial resources without jeopardizing government assistance, helping to improve the quality of life for your loved one.

Who Needs a Special Needs Trust?

If you have a loved one with special needs, creating a Special Needs Trust can offer financial security and peace of mind. This trust ensures your loved one receives the care they need while protecting their eligibility for essential public benefits.

Special Needs Trusts can be established using the funds of the beneficiary receiving public assistance or by family members contributing their own assets. Without proper planning, inherited or gifted assets can disqualify the beneficiary from receiving vital benefits.

Common challenges families face include:

• Guardianship issues.

• Loss of control to the courts.

• Difficult reporting requirements.

• Preserving medical and income benefits.

• Maximizing quality of life.

What Is a Special Needs Trust?

A Special Needs Trust is an estate planning tool that allows a beneficiary to continue receiving government benefits while inheriting or receiving other financial support. It helps protect assets from Medicaid payback rules and provides financial resources for additional care or comfort.

When set up by AFEPI, your trust is designed to exclude the inherited assets from government scrutiny, ensuring public benefits are not interrupted or denied

Who Can Establish a Special Needs Trust?

A "Self-Funded Special Needs Trust" (SF-SNT) must be created by a parent, grandparent, legal guardian, or court for individuals using their own funds, such as lawsuit settlements, gifts, or inheritances.

For third-party trusts (created by someone other than the beneficiary), there are fewer restrictions, offering more flexibility in planning.

Key Benefits of a Special Needs Trust

  • Maintain Eligibility for Benefits: Protect Medicaid and SSI eligibility while providing supplemental funds.

  • Preserve Assets: Avoid disqualification from benefits due to exceeding the $2,000 asset limit.

  • Lifetime Care: Ensure ongoing support for your loved one, even after you’re gone.

When Should You Set Up a Special Needs Trust?

The best time to set up a Special Needs Trust is now. Early planning prevents complications, such as loss of benefits or Medicaid payback requirements, and ensures that inherited or gifted assets are properly managed.

Situations where a trust is essential include:

• The special needs individual is already receiving benefits.

• Parents or grandparents want to preserve contributions or gifts.

• The individual inherits property or receives a court-mandated settlement.

How Are Special Needs Trusts Managed?

A trustee, who can be a relative, friend, professional, or organization, manages the trust. The trustee is legally bound to act in the beneficiary’s best interest, ensuring the funds are used appropriately and in line with the trust’s terms.

Funds in the trust can be used for:

• Home and vehicle maintenance.

• Vacations.

• Educational expenses.

•Monthly bills like phone, internet, and cable.

Key Considerations

1 . Taxes: Most Special Needs Trusts are taxed as pass-through entities, meaning the income is reported on the beneficiary's tax return. Proper management minimizes tax liability.

2. Revocable vs. Irrevocable: First-party trusts must be irrevocable, while third-party trusts can be either, depending on your needs.

What Happens to the Trust After Death?

Upon the beneficiary’s death, the trust typically dissolves. Depending on the trust type, any remaining funds may be subject to Medicaid repayment or distributed according to the trust’s terms.

Take Action Today

Don’t wait until it’s too late to protect your loved one’s future. If a special needs individual owns assets or receives an inheritance outright, it can jeopardize their benefits. Setting up a Special Needs Trust ensures your loved one receives the care they deserve without risking essential government assistance.

Take the First Step Today!

Don’t leave your future to chance. The decisions you make today shape the legacy you leave tomorrow. Our team of dedicated estate planning professionals is here to guide you through the process with clarity, care, and expertise. Whether you’re looking to protect your loved ones, preserve your assets, or minimize tax burdens, we’re committed to providing solutions tailored to your unique goals.

Here’s what you can expect from your complimentary consultation:

  • A Comprehensive Review of Your Needs: We’ll take the time to understand your financial and family situation, your goals, and your concerns.

  • Clear Explanations: Estate planning can feel overwhelming, but we simplify the jargon and outline your options in straightforward terms.

  • Tailored Strategies: Whether it’s asset protection, tax advantage accounts, or veterans’ trusts, we provide recommendations that align with your specific circumstances.

  • A Path Forward: You’ll leave with a clear understanding of your next steps and how we can support you in achieving your estate planning goals.

Why Wait? Your Future

Deserves Attention Now.

Don’t leave your future to chance. The decisions you make today shape the legacy you leave tomorrow. Our team of dedicated estate planning professionals is here to guide you through the process with clarity, care, and expertise. Whether you’re looking to protect your loved ones, preserve your assets, or minimize tax burdens, we’re committed to providing solutions tailored to your unique goals.

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Our Partners

Christopher Moore, Your Legacy Builder

Let’s Build Your Legacy Together

The best time to secure your future is now. Whether you’re just starting or need to refine your current plan, I’m here to help you navigate the complexities of estate planning and asset protection with care and expertise.

Why I’m Passionate About Estate Planning

Estate planning is about more than protecting assets—it’s about protecting legacies. As your trusted guide, I bring together my business acumen, leadership skills, and coaching expertise to help families and individuals across Oregon, Washington, and Idaho build a future of security, prosperity, and peace of mind. Whether you’re considering a revocable trust, irrevocable trust, veterans’ trust, or exploring tax-advantaged strategies, my goal is to empower you with clarity and confidence every step of the way.

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Phone: 971-406-2194

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