Estate Planning

Estate Planning and Supplemental Needs Trusts

Alabama Family Trust does not provide legal advice. You should consult with an attorney that is knowledgeable about supplemental needs trusts. The following is provided only for general information purposes.

Parents, grandparents, aunts, uncles, siblings, and friends often wish to leave money to a loved one with a disability.  While this is a common trait of a loving family, if the family does not plan properly, the money can cause the person with the disability to lose government benefits such as Supplemental Security Income (SSI) and Medicaid.

By using a supplemental needs trust, means-tested government benefits can be protected for disabled individuals who are receiving money from legal settlements, inheritance, or gifts.  However, attorneys, parents, and guardians need to be careful to create the correct type of trust.  The supplemental needs trust will be either a first-party trust or a third-party trust. The type of trust used depends on the source of the money and whether that money has legally been attributed to the disabled individual.

Check into Estate Planning and Supplemental Needs Trusts

Contact your estate planning attorney to discuss your specific estate plan situation and supplemental needs trusts for your loved ones. Then, have your attorney check with Alabama Family Trust about how we can help administer the trust.

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Contact Alabama Family Trust via the contact link below to learn more about special needs trust funds.

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