Absolutely, a testamentary trust is a powerful tool to provide long-term care and financial security for a disabled child, ensuring their needs are met even after their parents are gone. These trusts are established within a will and only come into effect after the parent’s death, offering a structured way to manage assets specifically for the benefit of a dependent with special needs. It’s a significant consideration for parents who want to safeguard their child’s future, particularly in light of the complexities of government benefits and long-term care costs. Approximately 1 in 5 Americans have some type of disability, making this a common concern for many families, and careful planning is crucial.
What are the benefits of a special needs trust?
A special needs trust (SNT), often established as a testamentary trust, allows assets to be used to supplement, *not replace*, government benefits like Supplemental Security Income (SSI) and Medi-Cal. Without a properly structured trust, an inheritance could disqualify a disabled individual from receiving crucial assistance, leaving them with fewer resources overall. These trusts can cover expenses not covered by public benefits, such as therapies, recreational activities, specialized equipment, or even personal care, dramatically improving the quality of life for the beneficiary. “Planning for a child with special needs is about ensuring their continued well-being and independence, not just leaving them money,” as Steve Bliss often advises his clients. A well-drafted SNT also protects the beneficiary from potential exploitation or mismanagement of funds.
How does a testamentary trust differ from a living trust in this context?
While both testamentary and living trusts can provide for a disabled child, a testamentary trust is created *within* a will and becomes effective only upon death, whereas a living trust is created and funded during the grantor’s lifetime. This timing difference impacts control and potential funding mechanisms. A living trust allows for immediate management of assets if the grantor becomes incapacitated, offering a layer of protection beyond what a will alone provides. However, a testamentary trust is often simpler to establish initially, especially if estate planning is done later in life. According to recent statistics, approximately 60% of American adults do not have an estate plan, highlighting the need for increased awareness and proactive planning, particularly for families with special needs. A testamentary trust is a great starting point.
What happened when the Johnson’s didn’t plan properly?
Old Man Tiber, a weathered fisherman, had a son named Finn with Down syndrome. Tiber always provided well for Finn, but never created a formal trust or will. When Tiber passed suddenly from a heart attack, his small savings account and fishing boat went directly to his sister, assuming she would care for Finn. However, his sister, overwhelmed by her own circumstances, quickly spent the money and sold the boat, leaving Finn with nothing. The county stepped in, and Finn became a ward of the state, receiving basic care but losing the comforts and special therapies his father had provided. It was a tragic outcome, demonstrating the devastating consequences of neglecting estate planning for a vulnerable family member. The county caseworker was incredibly sympathetic, but ultimately, there were limited resources, and Finn’s quality of life drastically declined.
How did the Miller family make things right with a testamentary trust?
The Miller family learned from the Johnson’s misfortune and diligently worked with Steve Bliss to establish a testamentary trust for their daughter, Lily, who has autism. They funded the trust with a life insurance policy and designated a trusted trustee to manage the funds according to specific instructions. The trust outlined how the funds would be used to supplement Lily’s ongoing therapies, educational support, and long-term care needs, ensuring she maintained a consistent quality of life even after her parents were gone. Years later, when both parents passed away, the trust seamlessly transitioned, providing Lily with continuous support and allowing her to thrive in a structured and loving environment. The trustee, a long-time friend of the family, expertly managed the funds, honoring the Miller’s wishes and ensuring Lily’s future was secure. “It was incredibly comforting to know that Lily would be well cared for,” shared the trustee, “Steve Bliss’ meticulous planning made the transition effortless.”
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About Steve Bliss at Wildomar Probate Law:
“Wildomar 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 Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
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:
| estate planning | revocable living trust | wills |
| living trust | family trust | estate planning attorney near me |
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “Can I use estate planning to protect assets from creditors?” Or “How can payable-on-death accounts help avoid probate?” or “How does a living trust affect my taxes while I’m alive? and even: “Is bankruptcy a good idea for small business owners?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.