There are many different reasons people set up a trust. From avoiding probate, to ensuring property and family are protected, a trust can deliver a lot of benefits. A Special Needs Trust is one particular way you can help a disabled friend or family member.
Minnesota Special Needs Trusts
In the state of Minnesota, a special needs trust is used to establish specific benefits for a disabled person under the age of 65. With a special needs trust, you can ensure that a disabled loved one has financial protection to cover his or her needs after you die. When you establish a special needs trust, the assets in that trust are considered excluded assets for a qualified disabled person.
In order to meet the requirements of a special needs trust, there are several factors that must be taken into consideration. The requirements are fairly rigid, so it’s always wise to consult with a qualified estate planning attorney before trying to establish a trust. In order to qualify as a valid special needs trust, the following must be true:
- The trust must be established before the beneficiary turns 65;
- The trust must be established by a parent, grandparent, legal guardian, or the courts;
- The trust must be funded by the income of the individual (and may contain assets from other individuals as well);
- The must name a sole and lifetime beneficiary of the assets; and
- The individual’s disability must meet the requirements established by the statutes of Minnesota
An individual’s disability will automatically qualify for a special needs trust if it is a disability established by the Social Security Administration or State Medical Review Team, provided that the other requirements are also met.
There are many other factors to consider when it comes to a special needs trust. Consulting with a qualified Minnesota estate planning attorney is the first step in establishing this special type of trust. Ultimately, a special needs trust is a great way to provide financial security and protection for a loved one with a disability.
If you are considering setting up a special needs trust to provide financial protection for a disabled family member, then our lawyers are here to help. Our attorneys have helped thousands of clients since 1998. We work with clients throughout Minnesota. Contact the Brown Law Offices, P.A. today at 763-323-6555 for a free consultation.