<p>Does anyone have experience with Special Needs Trusts? We’re discussing a third party SNT for an adult child who’s likely to qualify for SDI at some point. Would it be better to use an attorney where we live or in the beneficiary’s state? What’s the best way to choose a lawyer who specializes in SNTs? I’ve done some online searches and found a few in both locations, but I’d be flipping a coin to pick one.</p>
<p>One reason to pursue this now is the concern about something happening to both dh & me before the need arises. I suppose we could leave a letter requesting a SNT be established from our estate before the division of assets, but I’m not sure that’s a good idea (if it’s even feasible.) </p>
<p>See a lawyer, Can’t help too much with the special needs kind of lawyer, but an ESTATE planning lawyer would be one I’d look for. The other thing to worry a lot about is who administers the trust. I was very impressed with one bank for our non-special needs trust department, so much so that I gave their name to friends needing special needs trusts and I know one went there. So she went to the bank first, then went to the lawyer they said they recommended. So might be a different avenue to get an attorney reference.</p>
<p>My oldest child has a special needs trust & I will happily share what we learned along the way.l We found the attorney who set up the special needs trust by going to our state bar website & looking for the committee on special needs trust & elder law. I contacted the head of committee & she is the one who ended up being our attorney to guide us through the tangled process and was wonderful We had previously met with a couple of elder law & estate planning attorneys and found that setting up a special needs trust was not their specialty, but something they did only occasionally.
Also, there are many financial institutions that have specific people who manage special needs trusts only but compare their fees & then see if you can negotiate it. We ended up going with an older family member ( but younger than DH & me) who is managing the trust for no fee and its such a blessing. Hopefully, when DS & youngest DD are older, we will have it changed where they manage it. I really want someone who knows her to be the one issuing the money & knowing her needs.
Good for you for planning ahead. Our was a mess to start with because my father left my oldest daughter money. Getting that much money in one month really messed up her benefits. It would have so much easier if a trust had been set up in advance to receive the money.</p>
<p>Try an association related to the disability in the state and county the adult child live. For example, NAMI families would have referrals for you, if the child had MI. </p>
<p>Thank you. The trouble that can arise after an inheritance as you mentioned, Floridamomof3, is one thing that concerns us so we want to find out whether that child’s portion of our estate could be left, in whole or in part, to the SNT. </p>
<p>We’re considering naming D1 as the trustee, since she will also be our executor. A while back she expressed concern about her sibling’s future support and I learned that she had been putting money aside for that purpose. Of course I explained that isn’t necessary, but it was very touching. So one hope is that she will be reassured by the SNT and won’t make decisions about her own finances based on a sibling’s possible needs.</p>
<p>Made me a little teary when I read about your daughter putting aside money on her own for her sibling. So very sweet. A great SNT attorney will explain clearly to you how the trust works and how to avoid the issue I mentioned earlier that occurred when my father left money directly to my special needs daughter ( he was trying to be helpful) instead of to a SNT. My daughter’s siblings know about the trust and how it works and I know its a big relief to them. </p>
<p>Our neighbors have opted to leave everything to the able-bodied S and nothing to the special needs S, with the understanding that the able-bodied S will take care of the sib for the rest of his life. The special needs S does get SSI and is on Medicaid. </p>
<p>It is prudent to look into this now, when you have the leisure to do so instead of during a crisis situation. I agree that it makes sense to see who is on the state bar committee (preferably in the state where the special needs person lives in). Interview several attorneys and find one who does this regularly, as that person will be familiar with the nuances and how to give a suitable amount of discretion to the trustee while protecting the assets from claims and helping it last as long as necessary.</p>
<p>I am an elder law attorney. A big part of every elder law practice is working with clients of all ages and their families living with all kinds of disabilities and special needs. We know the ins and outs of the various government assistance programs and know which kind of special needs/ supplemental needs trust (because there are several) would best address your family’s needs, with an eye always to preserving eligibility for whatever programs your loved one may need now and in the future. You can search for an elder law and special needs attorney near you by doing a search on the website of our national organization NAELA.org. You can search by zip code, distance, etc… Other suggestion is to contact your local Arc chapter because they will likely know all of the attorneys in their service area who are good at this kind of representation. Good luck! And, good for you thinking about planning ahead. </p>
<p>PS to HIMom above: sadly, we see the “strategy” of parents leaving everything to Kid #1 with the “understanding” that Kid #1 will take care of Kid #2 for the rest of his/her life way too often, usually chosen as a result of the parents being misinformed (or uninformed) about other ways to protect and care for all of their children. There are so many, many risks inherent in that plan for Kid #2, and it places an undue burden on Kid #1. In a heartbeat, Kid #1 could end up in some horrible financial crisis (say, for example, a very bad car accident resulting in multiple deaths and not enough insurance), and the entire inheritance is wiped out by the resulting lawsuit. Kid #2 is then up a creek. Or, Kid #1 decides it is all much too hard, and walks, taking his/her (not yours, and not Kid #2’s) money with him/her. Or, Kid #1 gets divorced, and soon-to-be-ex-in-law gets to walk away with a big piece of the $$ that parents thought would be there for Kid #2. Kid #2 would have no recourse. Disinheritance is not a good plan. There are so many wonderful ways that we can craft a plan that does protect everyone. I beg you (if you are good enough friends with your neighbors to butt in) to encourage them also to make an appt with someone who does this work 24/7 so they can explore better and safer options for their special needs child. </p>
<p>I have to say, as a lay person, that the instant I read HImom’s post disastrous scenarios started flashing through my mind. I think that MJSMOM is completely correct. Leaving everything to one sibling with the understanding that they will take care of another seems like asking for trouble, to me. There are SO many ways it could go wrong…</p>
<p>Yes, it is very upsetting to me, but they are pretty set on this plan. At this point, neither of their two sons are married and so far have been good together. It is NOT what I would do or recommend. I have broached the subject a few times, specifically mentioned Special Needs Trusts, since that is something we were considering at one point (but fortunately at this point don’t need to pursue it).</p>
<p>It’s hard to get someone else to change their thoughts about what makes the most sense. In some ways, it is interesting to us, since they are very risk adverse for the most part but somehow don’t see that what they are “planning” is actually VERY risky. Will try to broach the subject again, if the opportunity arises.</p>
<p>We have been in a similar situation with respect to the refusal to use a special needs trust. FIL had three kids. He left a substantial amount to two (including my spouse) and a much smaller amount to my spouse to hold and disburse to the third child as needed so as not to cause him to lose SSI. There is no concern about my spouse using the money inappropriately, but the disparity in the amount caused hard feelings. We had concerns about having money in our name that was not really ours to use, as it would count against us in applying for financial aid for college. It turns out to be a moot point for us, but it is something for HImom’s friends to consider. They don’t want to disqualify any future grandkids from receiving financial aid because one child is “holding” money for the other.</p>