Believe it or not, if you are the parent of a special needs child in Pasadena, it may not be helpful to leave your child money through your will. This could actually hinder the child from receiving governmental benefits, including Supplemental Security Income. When minor or adult children who are receiving benefits due to a disability or a special needs diagnosis suddenly receive a lump sum payment into their accounts, the government will assume that the person no longer requires special assistance.
However, a Pasadena special needs trust can solve this problem by setting up an account to hold money on behalf of the special needs individual. This account is called a trust, and it must be managed by a trustee who could be a family member or a person designated by the courts. The trustee will then use the money to make necessary financial payments on behalf of the special needs individual. Some common examples include renting an apartment, paying for food, buying a car, hiring a house cleaner and paying for a vacation. The money cannot be given as cash to the special needs individual without repercussions.
Setting Up Special Needs Trusts
Pasadena special needs trusts are often set up around the same time that parents set up their wills. However, they may also need to be set up if the special needs individual receives a cash settlement from a disability lawsuit or similar case.
Parents will definitely want to work with a lawyer to set up a special needs trust. The trust must be worded in a very particular manner to ensure that it is accepted as desired by the courts of law. In particular, it should include language about providing supplemental care and should include provisions from the United States Code. It will also need to reference a variety of laws that can be impossible for the average individual to understand. In particular, individuals will want to work with an attorney if the trust is being set up with funds provided through a settlement rather than through an inheritance.