People assume that they have an unlimited amount of time to decide whether or not to establish a Special Needs Trust in Virginia for their disabled loved one – so they procrastinate. However, there are some limitations. Let me explain:
Special Needs Trusts are a great way to save money for a disabled person that does not risk his or her eligibility for government funded programs such as Medicaid and Supplemental Security Income (SSI).
There are three types of Special Needs Trusts:
First Party Special Needs Trust)
A First Party Special Needs Trust, also known as a d(4)(a) trust, is established with assets that belong to the beneficiary. A First Party Special Needs Trust must be created and funded before the beneficiary turns 65 years old.
Third Party Special Needs Trust
A Third Party Special Needs Trust is established usually by a family member for the benefit of the beneficiary with assets of the family member. There are no age restrictions for a Third Party Special Needs Trust.
Pooled Special Needs Trust
A Pooled Special Needs Trust, also known as a d(4)(c ) trust, can be established by a beneficiary or a family member for the benefit of the beneficiary. A Pooled Special Needs Trust is managed by a nonprofit organization. In Virginia a Third Party Pooled Special Needs Trust can be established for beneficiaries of any age. However, a First Party Pooled Special Needs Trust can only be established for someone under the age 65.
When creating a special needs trust, it is extremely important to work with an attorney in Virginia who has experience and understands all of the intricacies of this specialized estate planning tool. If you are considering a Special Needs Trust in Virginia, call the Fairfax, Virginia, Law Firm of Sheri R. Abrams at (571) 328-5795 to schedule an appointment.