In this Elder Law Minute, Paige Fox explains why younger couples need estate plans, including powers of attorney and guardianship provisions for minor children.

Special Needs Trust Planning in Illinois

Hi, my name is Steven Milburn and I’m a senior associate attorney here at Dent Coulson Elder Law. These Elder Law minutes are intended to provide you with a framework to address any questions that you may have in your estate planning journey. Thank you.

Personal Connection to Special Needs Planning

Today we’re going to talk about uh special needs trust. Not only am I an attorney who’s reviewed a lot of trust, but I also have a daughter uh who has Down syndrome. So, I’m familiar with the need for planning uh for her future.

Types of Special Needs Trusts

They’re essentially two different types of special needs trust that uh we can utilize in order to provide for future of a disabled individual.

Third-Party Special Needs Trust

One is a third party funded trust uh which means that it’s not that individual’s money. And so, when it’s not that individual’s money establishing the trust, uh there doesn’t need to be certain payback language that would be required if it was their money.

So those are the most advantageous uh because you don’t have to pay the state back for the benefits received.

How Third-Party Trusts Are Funded

So those can be established ahead of time you know as parents uh for that individual. You can direct you know grandparents or other family members who wish to put money into that trust to fund it that way.

Those individuals can fund it separately uh through their own trust or through their will. You can also do it in as a testamentary trust.

First-Party Special Needs Trust

And then if the individual does receive money directly, the disabled individual receives their own funds, they can still establish a special needs trust uh before they reach age 65 and that special needs trust will need to have the required payback language, but that trust can still provide for them uh during their life.

Closing

So if you have any questions regarding special needs trusts or special needs trust planning, give us a call at Den Coulson Elder Law.

Also looking for information about Medicaid and Asset Preservation? Visit these articles:

• • Do Living Trusts Protect Assets From Medicaid or VA Spend Down?
  • How an Asset Preservation Trust Protects Your Life Savings From Long-Term Care Costs
  • Why Do I Need an Asset Preservation Plan?

---

“Your Trusted Advisor on the Elder Care Journey”

Dent-Coulson Elder Law is dedicated to providing families in the St. Louis area with their Elder Law needs. Our practice areas include Asset Preservation Planning, Veterans Benefits, Medicaid Eligibility, Alzheimer’s Planning, Special Needs Planning, Estate Planning and more. We understand the financial challenges you may face as you and your loved ones grow older. At Dent-Coulson Elder Law, our clients’ well-being is our number one priority. For immediate help, call (618) 632-7000 (IL) or (314) 567-9292 (MO), or Contact Us and we will get in touch as soon as possible.