When someone dies without creating an estate plan, their assets will be distributed according to intestacy laws. This means that the court will decide who should inherit the deceased person’s assets, which may not align with the deceased person’s wishes. Additionally, if any debts or taxes are owed, these will need to be paid out of the estate before any inheritance can be distributed. This can cause significant financial hardship for the deceased person’s loved ones.

If you die without an estate plan, your loved ones may go through a lengthy and costly probate process to settle your affairs. Probate can be a stressful and emotional time for those left behind, and it can also tie up your assets for months or even years. By creating an estate plan, you can avoid this stress and ensure that your loved ones are taken care of in the way you desire.

How can an attorney help?

An estate planning attorney can help you create a plan for distributing your assets after you die. This plan can include a will, trusts, and other legal documents. The attorney can also help you manage your estate during your lifetime if you become incapacitated.

Creating a plan for your estate can be complex, and working with an experienced attorney is important to ensure that your wishes are carried out according to your wishes. Estate planning can also help you minimize taxes and other expenses, and it can help you protect your assets from creditors.

Estate planning should not be put off until later in life. Everyone should have an estate plan, regardless of age or financial situation. If you have any assets or debts, it’s important to ensure that they are taken care of in the event of your death. An experienced estate planning attorney can help you create a comprehensive estate plan that protects your loved ones and assets. Contact an attorney today to get started. If you still need to create an estate plan or if you need to update your existing plan, an estate planning attorney can help you. Contact an attorney today to get started on creating or updating your estate plan.

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How to Protect Your Loved One

One way to provide for your loved one with a disability after you’re gone is to set up a Special Needs Trust (SNT). An SNT is a trust designed to hold assets for the benefit of someone with a disability without jeopardizing their eligibility for government benefits like Social Security or Medicaid. The money you leave in a special needs trust will be managed by a trustee and will not be considered part of your loved one’s assets. Government programs like SSI and Medicaid will be factored separately for eligibility. A trustee cannot give money directly to your loved one, which could interfere with eligibility. A trustee can use an SNT for out-of-pocket medical expenses, dental expenses, education, transportation, and personal care. You will want to choose a responsible person to grant as the trustee; however, if you cannot come up with a good candidate, you can create a pooled trust. A pooled trust is a nonprofit organization that will pool and invests funds from multiple families. Every trust beneficiary will have a separate account, and the trustee will spend money on behalf of that beneficiary. Not every area of the country uses pooled trusts, so reach out to your lawyer to see if your state participates in pooled trusts.

Who Will Benefit from an SNT?

You may have a loved one who would benefit from an SNT. The purpose of an SNT is to preserve eligibility for SSI and Medicaid, ensuring food, shelter, and medical care while your loved one is unable to work. SNTs benefit anyone with permanent or temporary special needs, someone who may someday have a particular need, who currently receives SSI or Medicaid but may need additional funds, or who cannot manage their finances independently. Anyone with down syndrome, specific brain damage, someone who has developed paraplegia, certain congenital disabilities, or chronic mental illness.

Are there any disadvantages of an SNT?

There are a few disadvantages of an SNT that you want to consider. First, there can be high costs when setting up an SNT with a lawyer. You can set up an SNT on your own, but weigh the pros and cons of getting legal help with the initial setup. Depending on the person’s needs, an SNT can feel very restrictive. If the person with special needs is independent, they may struggle with accessing funds, as the trustee will have the final say. Even with a properly drafted SNT, the state can recover some or all of the costs paid for care. This process is called Medicaid estate recovery. After the person has passed, Medicaid benefits can be seen as a loan that needs to be paid back. However, there is a limit that the state can recover, and restrictions that protect against the state recovering costs. Contact a professional to discuss the pros and cons of Medicaid estate recovery.

If you need legal help or want to learn more about a special needs trust, contact Rowe & Walton today.

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