Montgomery Special Needs Estate Planning: Special Needs Attorney in Kendall County, IL

 Posted on February 02, 2023 in Estate Planning

People with disabilities and their households in Montgomery and Kendall County, Illinois, must understand what government benefits are available to them and how those programs are affected by a range of other financial considerations, such as employment. They should also plan for and safeguard their loved one's care and assets to ensure their loved one's future security.

A special needs trust is an ideal choice for those who want to offer financial assistance to a loved one, and it should be considered part of everyone's will or trust. A special need trust not only safeguards disabled loved one at that moment the will or trust is executed, but it is also beneficial if a loved one who was not handicapped at the time the will or trust was made subsequently becomes disabled.

Having legal assistance on your side who knows the subtleties and legislation that affect people with special needs in Montgomery and other areas of Kendall County, in addition to the benefits they may be eligible for, might be critical to the success of a special needs’ estate plan. Gateville Law Firm's special needs estate planning attorneys will assist you in developing a plan that will enrich and encourage your special needs children.

What is Special Needs Planning in Montgomery

Special needs trusts are meant to provide financial assistance to disabled loved ones while retaining the disabled person's eligibility for government assistance programs. One of the most essential roles of an estate planning attorney is to assist you and your family in anticipating difficulties that may arise as a consequence of your death or disability. Estate planning is especially important for parents who have one or more children who qualify for government benefits like social security disability income. People may be qualified for one of two types of disability programs.

1. Social Security Disability Insurance

“Social Security Disability Insurance” is the first kind of disability program. Social Security Disability Insurance is intended for disabled people who have worked long enough to contribute to the insurance system. As a result, the handicapped individual worked for a lengthy period of time while paying into the "insurance system" in order to earn a reward for being disabled.

This sort of disabled person receives insurance that is not based solely on the needs. An inheritance will not preclude a beneficiary from government-based benefits owing to having worked for a sufficient duration to qualify for the insurance program. Contributing to social security disability is analogous to contributing to unemployment insurance. A person works long enough to qualify for the insurance policy meant to help those who become disabled later in life.

2. Supplemental Security Income

Supplemental Security Income (SSI) is a national government program that provides handicapped people with government assistance and benefits. The Social Security Administration is in charge of this program. This program, unlike Social Security Disability Insurance, is not supported by insurance benefits. Individuals who qualify for SSI get help from the government such as food, housing, or clothes.

SSI is intended for disabled people who have never worked or have never worked long enough to qualify for social security disability insurance benefits. Health insurance is an essential benefit for disabled people. Medicaid is a state-based health insurance program for those with low incomes and assets. The State of Illinois administers Medicaid all across Illinois, including Montgomery and neighbouring areas of Kendall County.

The majority of SSI disability recipients are eligible for Medicaid.

Third-Party Special Needs Trusts in Montgomery

A third-party Special Needs Trust, also known as a Supplemental Needs Trust, is one supported by assets other than the handicapped person's own. The goal of a Third-Party Special Needs Trust is to donate one's assets to a handicapped person who qualifies for SSI.

The Third-Party Special Needs Trust provides the possibility to remain eligible for the government's needs-based social security disability system. Unlike the first-party Special Needs Trust, there is no “payback” provision if the handicapped individual dies.

The Special Needs Trust must compensate the government for expenditures used to financially help the handicapped person with special needs when using a First-Party Special Needs Trust.

What Can Be Included in a Special Needs Trust in Montgomery

What can be kept in a special needs trust is not constrained. Property such as real estate, shares, businesses, and jewels are commonly included by trust founders. The assets are transferred into the special needs trust in a straightforward manner. This can be accomplished by including a special needs clause in a will or revocable living trust.

Who Can Create Special Needs Trusts in Montgomery

There are presently no limits on who may form or give to a special needs trust, nor on the number of trusts that may be formed for a single individual with special needs. Your Montgomery Special Needs Attorney can guide you with all this.

Necessity of Special Needs Clauses

The purpose of inserting special needs clauses in a will or trust is to protect the financial stability of a loved one who has special needs. Even if unique requirements are not anticipated at the time, this provision can and ought to be included when drafting a will or trust. Gateville Law Firm's skilled and competent estate planning attorneys will always advise you to plan for the worst-case scenario. If a loved one has or develops special needs, their preferences and requirements will be threatened if there is no specific wording in their will or trust.

There are no two scenarios that are alike. It is critical to establish a special needs trust irrespective of if you do have disabled loved one at the time you are finalizing your will or trust. As previously stated, a special needs trust applies to persons who develop disabilities after your will or trust has been enacted. It is critical that you have a qualified and experienced attorney assist you in writing your will and trust to ensure that your unique goals are realized and that everything is done correctly and in conformity with the appropriate laws that govern Montgomery and other neighbouring regions in Kendall County, Illinois.

How to Set-Up a Special Needs Trust in Montgomery

Usually, a special needs trust will be incorporated into the trust deed in your will bundle, that will be put up by your attorney, if you engage in estate planning with Gateville Law Firm. This is why having an experienced and qualified attorney assist you in establishing a special needs trust is beneficial. Your Montgomery Estate Planning Attorney can tailor your trust arrangement to your specific needs. Explicitly put, the objective of a trust is to appoint someone known as the trustee or executor to handle the assets that you have opted to place in it after your death. The person you appoint as trustee or executor is legally committed to the provisions of your trust, and they must execute it precisely as you have drafted it.

The special needs provision says that if a beneficiary named in your will or trust becomes disabled and meets the criteria for any of the government's “needs-based” programs listed above, your executor has the authority to take proceeds from your estate and distribute them to the disabled individual through the special needs trust. Following that, the receiver will get trust earnings. The wording in this section stresses that the trust's purpose is to secure and maintain the governmental advantages that the beneficiary currently receives or will get in the future, while simultaneously allowing the recipient to profit from any resources contributed.

Benefitting from the Special Needs Trust

Property and funds in a special needs trust can be used for anything as long as there is no explicit language to the contrary. This frequently includes anything that may improve the beneficiary's standard of living or quality of life, such as therapies, caregivers, household expenses, clothing, furniture, and other common household necessities.

Things to Remember 

It is crucial to contact specialists who can provide knowledge and assistance with critical issues. These include not just Attorneys specializing in Wills, Special Needs Trusts, and Guardianship, but also Benefits Planning Specialists, Community Work Incentive Coordinators, Financial Planners, and others. While the services they provide vary greatly, they all deal with the broad issue of financial resources. They also provide advice and support to maximize the effectiveness of available resources. It is vital for a person to grasp the scope of services as well as the provider's experience in this field.

Call a Montgomery Special Needs Attorney Today

Special Needs Trusts are established to guarantee that the people we care about have the kind of life we desire. These requirements must be addressed in your will or trust, and you should consult with an attorney as soon as possible. Hiring a competent and experienced estate planning attorney is crucial to achieving your objectives and carrying out your estate planning successfully.

Peace of Mind Asset Protection, LLC specializes in estate planning, asset protection, and wealth management. Our estate planning attorneys use asset protection measures to secure our clients' financial stability and peace of mind. We are glad to help you and your family with your estate planning. Call us now at 630-882-2467or use our online contact form.