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

 Posted on February 01, 2023 in Estate Planning

People with disabilities and their families in Oswego and other areas in Kendall County, Illinois, must understand what government benefits are available to them and how those benefits are affected by several other financial conditions, such as employment, for example. They must also plan for and preserve their loved one's care and assets in order to ensure their loved one's future is not in jeopardy.

A special needs trust is an excellent choice for individuals who want to assure the financial assistance of a loved one, and it ought to be included in everyone's will or trust. A special need trust not only protects a loved one who is disabled at the stage the will or trust is executed, but it is also beneficial if a loved one who was not disabled at the time the will or trust was executed unfortunately becomes disabled later.

Having a legal professional by your side who properly knows the subtleties and legislation that affect people with special needs in Oswego and other areas in Kendall County and the benefits they may be eligible for can be critical to a successful special needs estate plan. Peace of Mind Asset Protection, LLC's special needs estate planning experts can assist you in creating a plan that will improve and encourage your children with special needs.

What is Special Needs Planning in Oswego

Special needs trusts are intended to offer financial support for handicapped loved ones while maintaining the disabled person's qualification for government aid programs. One of the most important tasks of an estate planning attorney is to help you and your family foresee challenges that may occur as a result of your death or disability. Estate planning is especially crucial for parents who have one or more children who are eligible for government benefits such as social security disability income. There are two types of disability programs that people may be eligible for.

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 their 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 Oswego and neighboring areas of Kendall County.

The majority of SSI disability recipients are eligible for Medicaid.

Third-Party Special Needs Trusts in Oswego

A third-party Special Needs Trust, also known as a Supplemental Needs Trust, is one that is funded by assets other than those of the disabled person. The Third-Party Special Needs Trust's objective is to give one's assets to a disabled individual who qualifies for SSI.

The opportunity to stay qualified for the government-needs-based social security disability system is an advantage of the Third-Party Special Needs Trust. In contrast to the first-party Special Needs Trust, there is no “payback” provision in the event that the impaired person dies.

With a First-Party Special Needs Trust, the Special Needs Trust must reimburse the government for expenses made to financially assist the disabled person with special needs.

What Can Be Included in a Special Needs Trust in Oswego

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 Oswego

There are currently no restrictions on who may establish or contribute to a special needs trust, nor on the number of trusts that may be established for a single special needs or disabled individual. Your Oswego Special Needs Attorney will be able to help you with this.

Necessity of Special Needs Clauses

The goal of incorporating special needs provisions in a will or trust is to safeguard a loved one's financial security if they have special needs. Even if special needs are not expected at the present, this clause can and should be used while creating the will or trust. An expert and qualified estate planning attorney at Peace of Mind Asset Protection, LLC always advises you that it is best to prepare for the worst-case scenario. If a loved one has or develops special needs and there is no express language in their will or trust, their wishes and needs will be jeopardized.

There are no two scenarios that are alike. It is critical to establish a special needs trust irrespective of if you do have a 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 Oswego and other neighboring regions in Kendall County, Illinois.

How to Set Up a Special Needs Trust in Oswego

Usually, a special needs trust will be incorporated into the trust deed in your will bundle, which will be put up by your attorney, if you engage in estate planning with Peace of Mind Asset Protection, LLC. This is why having an experienced and qualified attorney assist you in establishing a special needs trust is beneficial. Your Oswego 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 section stipulates that if a benefactor you named in your will or trust does become disabled and meets the requirements for any governmental “needs-based” programs like the ones listed above, your executor has the right to take proceeds from your estate and disseminate them to the disabled individual through the special needs trust. The recipient will thereafter receive earnings from the trust. The phrasing in this clause further emphasizes that the trust is to safeguard and preserve the governmental benefits that the recipient is getting or is eligible to receive in the future, while also allowing the recipient to profit from any monies donated.

Benefitting from the Special Needs Trust

Properties and monies in a special needs trust can be utilized for anything as long as there is no clear text to the contrary. This often covers everything that might improve the beneficiary's standard of living or quality of life, such as treatment, caretakers, household expenses, clothes, furniture, and common household necessities.

Things to Remember 

It is important to contact professionals that give information and aid with critical concerns. These include not only Attorneys who specialize in Wills, Special Needs Trusts, and Guardianship, but also Benefits Planning Specialists, Community Work Incentive Coordinators, Financial Planners, etc. While their services vary widely, they always deal with the broad subject of financial resources. They also give advice and assistance to maximize the efficacy of the resources that are available. It is critical for a person to understand the extent of services and the provider's experience in this area of services too.

Call an Oswego 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. 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 630-882-2467 or use our online contact form.