Planning for the long-term care of adult dependents, whether due to disability, age, or other reasons, is a significant concern for many families, and a trust can be a powerful tool to ensure their continued well-being without jeopardizing government benefits or creating undue financial strain. Approximately 1 in 5 U.S. adults experience some form of disability, and the costs associated with long-term care are continually rising—the national average cost of a year in a nursing home is over $90,000 (Genworth 2023 Cost of Care Survey). A well-structured trust can provide for their needs while preserving eligibility for vital programs like Supplemental Security Income (SSI) and Medicaid, which have strict income and asset limitations. It’s not simply about transferring assets; it’s about strategic planning and legally sound documentation, something Steve Bliss, an experienced estate planning attorney in Escondido, specializes in.
What are the benefits of a Special Needs Trust?
A Special Needs Trust (SNT) is specifically designed to hold assets for a beneficiary with disabilities without disqualifying them from needs-based government benefits. There are two primary types of SNTs: first-party and third-party. A first-party SNT, also known as a self-settled trust, is funded with the beneficiary’s own assets, often from a personal injury settlement or inheritance. A third-party SNT is funded by someone other than the beneficiary, such as a parent or grandparent. These trusts allow the beneficiary to maintain a higher quality of life, covering expenses like specialized medical care, therapies, recreation, and personal care items—things often not covered by government programs. “The goal is to supplement, not supplant, the assistance they already receive,” Steve Bliss often explains to his clients. These trusts require meticulous planning and adherence to specific rules to avoid complications.
How can a trust help manage finances for an aging parent?
As parents age, many families grapple with the question of how to manage their finances, especially if cognitive decline begins to set in. A revocable living trust can be an excellent solution, allowing you to act as trustee and manage your parent’s assets on their behalf while they are still alive, and then seamlessly transition control upon their passing. This avoids the often-lengthy and costly probate process. According to a 2022 study by Caring.com, only 48% of American adults have estate planning documents such as a will or trust. This leaves a significant portion of the population vulnerable to financial hardship and legal complications. Furthermore, trusts can be drafted with provisions for paying bills, managing investments, and providing for long-term care needs, all while protecting assets from potential creditors or misuse.
What happens if I don’t plan for my adult dependent?
I remember working with a family, the Harrisons, where the mother, Eleanor, had not established any formal plan for her adult son, David, who had Down syndrome. She passed away unexpectedly, leaving David reliant on his sister, Sarah, to manage his modest inheritance and ensure his continued care. Sarah, already juggling her own family and career, quickly became overwhelmed with the financial and logistical challenges. The inheritance, meant to supplement David’s SSI benefits, was quickly depleted by legal fees and administrative costs. David’s quality of life suffered, and Sarah faced immense stress and guilt, realizing the importance of proactive estate planning. She then consulted with Steve Bliss, and through a carefully crafted SNT, established a secure financial future for her brother, ensuring he received the care and support he deserved.
Can a trust be revised if my dependent’s needs change?
Fortunately, unlike a will, trusts offer a significant degree of flexibility. A revocable living trust, for example, can be amended or revoked altogether during your lifetime, allowing you to adjust the terms as your dependent’s needs change. Even irrevocable trusts, like many SNTs, may include provisions for modifications under certain circumstances, such as changes in the law or unforeseen circumstances. I recently helped a client, Mark, whose daughter, Emily, with cerebral palsy, unexpectedly received a substantial inheritance from a distant relative. We were able to amend her existing SNT to accommodate the additional funds without jeopardizing her eligibility for Medicaid. “It’s about proactively addressing potential challenges and ensuring the trust remains aligned with the beneficiary’s evolving needs,” Steve Bliss emphasized. With careful planning and ongoing management, a trust can provide a lasting legacy of care and support for your adult dependent, offering peace of mind for you and a brighter future for them.
“Proper estate planning is not about death; it’s about life and ensuring your loved ones are cared for according to your wishes.” – Steve Bliss, Estate Planning Attorney.
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About Steve Bliss at Escondido Probate Law:
Escondido Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
- living trust
- revocable living trust
- irrevocable trust
- family trust
- wills and trusts
- wills
- estate planning
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/oKQi5hQwZ26gkzpe9
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Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “How does estate planning differ for single people?” Or “Do I need a lawyer for probate?” or “How does a trust work for blended families? and even: “What are the long-term effects of filing for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.