San Antonio Special Needs Trust Lawyer

San Antonio Special Needs Trust Attorney

If you have a family member with a disability, setting up a special needs trust can be an effective way of protecting their assets and ensuring peace of mind for the future. This process, however, can be complex. By hiring a skilled San Antonio special needs trust lawyer, you can acquire sound counsel on setting up a special needs trust that works for your family. A knowledgeable San Antonio trusts lawyer can also help you coordinate your special needs trust with your broader estate plan.

Ramsey Law, PLLC was begun by Amber Ramsey to serve fellow Texans and provide them with peace of mind. She has been working for years to assist clients across a wide array of legal issues, including guardianship, estate planning, and the establishment and management of trusts. She understands that the legal process can be overwhelming and brings a dedication and depth of knowledge that makes it easy for clients to understand what needs to be done. As a trusted San Antonio estate planning lawyer, she can integrate special needs trusts with wills, powers of attorney, and other key documents.

Trusts and Government Programs

A trust is a legal arrangement where one party grants a trustee to manage assets on behalf of a beneficiary. There are important mechanisms in instances where a family or loved one is unable to manage funds on their own.

Government programs such as the Supplementary Security Income (SSI) and Medicaid offer financial assistance to people with special needs. However, depending on the amount of income an individual or family has, they may fall outside of certain qualified assistance. A special needs trust is a common way people in such a situation can retain assets to pay for long-term care. If you are unfamiliar with these tools, learning more about what a trust is can make the structure and purpose of a special needs trust easier to understand.

Special Needs Trusts

In Texas, special needs trust laws are governed by federal statutes. As part of the federal Omnibus Budget Reconciliation Act of 1993, Texas allows for the establishment of special needs trusts through Revision F-6710 for those who meet the criteria for disability under SSI and Medicaid standards.

There are certain provisions that a special needs trust must meet within the state. In Texas, a special needs trust must be irrevocable, a designation that typically makes it difficult to change. The trust must be administered by a trustee, who will use funds to pay necessities on behalf of the beneficiary only.

There are several types of special needs trusts that are commonly established. These are:

• First-party trusts. This type of trust is typically funded with a beneficiary’s own assets. They are administered by a trustee, and upon the death of the beneficiary, the state may be designated as the recipient of the remaining funds equal to the amount of Medicaid paid on the beneficiary’s behalf.
• Third-party trusts. These are often funded by another person’s assets, typically a relative of the beneficiary. There is no Medicaid payback scheme with these trusts, as the assets involved are not considered the beneficiary’s own property.
• Pooled trusts. This type of trust consists of a combination of assets from multiple beneficiaries with special needs. It is typically managed by a non-profit organization that keeps track of individual accounts.

Special needs trusts can be used to pay for essentials such as medical expenses not covered by Medicaid, housing such as rent or mortgages, bills, and even recreational activities. However, direct cash cannot be transferred to the beneficiary, nor direct rent or mortgage payments, without a structured plan.

Likewise, if the beneficiary is receiving SSI, it cannot be used to pay for groceries. The average SSI payments in Texas range between $400 and $800, and are expected to cover this cost. A helpful legal guide to protecting assets and estate planning can also clarify how a special needs trust fits alongside other strategies you may be considering.

Hire a Special Needs Trust Lawyer

Hiring a competent San Antonio special needs trust lawyer is an important part of establishing a functioning trust that works for you and your loved ones. They can help you to set up a trust that works for the benefit of your beneficiary and ensure that a trust complies with state and federal regulations, to give you peace of mind.

Amber Ramsey has extensive experience with special needs trust cases and understands and can provide comprehensive counsel to help ensure any trust set up both meets your needs and aligns with regulations.

FAQs

What Can a Special Needs Trust Not Pay for In Texas?

In Texas, special needs trusts can pay for many things, but there are restrictions on certain kinds of payments. It cannot, for example, pay for groceries if the beneficiary is receiving SSI, nor can it pay in cash for rent or mortgages without a structured payment. In addition, cash benefits and gifts to the beneficiary are prohibited.

What Is the Special Needs Trust Statute in Texas?

In Texas, trusts are articulated under the federal Omnibus Budget Reconciliation Act of 1993 and Revision F-6710. It states that trusts may be established for those who meet the SSI program’s disability criteria. Certain provisions are articulated within this statute regarding the role of the state and the part Medicaid plays in disbursement upon a person’s death in the case of first-party trusts.

What Are the Restrictions of a Special Needs Trust?

While special needs trusts allow for flexibility when managing the assets of a loved one or family member, there are certain restrictions that apply. The beneficiary must meet the standard definitions of a disability under SSI and Medicaid. The trust must have a trustee. A special needs trust must also be irrevocable, making it difficult to change once established.

What Is the 5 Year Rule for Special Needs Trust?

The 5-year rule for special needs trusts typically applies to first-party trusts. This consists of a 5-year review by Medicaid to scrutinize any transfers of assets that may have occurred in that time. If any are present, they may be subject to penalty. The purpose behind this provision is to prevent individuals from getting rid of assets to qualify for Medicaid benefits.

Contact Our San Antonio Special Needs Trust Lawyer

In San Antonio, an estimated 15% of the population lives with a disability of some kind. Setting up a special needs trust is an excellent tool in protecting the interests and safeguarding the future of a family or loved one with a disability. By hiring a special needs trust lawyer at Ramsey Law, PLLC, you can find peace of mind in knowing that their interests are looked after. Contact us today and find out how our knowledge and experience can help.