Northington Blog

Special Needs Trust Part II

 

The action steps to establishing a Special Needs Trust.  Establish a relationship with a Gold standard advisory team made up of the following professional advisors.

  • Attorney- qualified and who is experienced in working with Special Needs Trust in your state;
  • C.P.A.- qualified tax professional who can provide confident tax advice;
  • CERTIFIED FINANCIAL PLANNER™, qualified holistic planning advice;

The action steps to establishing the Special Needs Trust.  The laws governing trust are complex, and vary from state to state. At Northington Investment Group, we believe the selection of your attorney is the key first step in the process.  We then recommend you surround your attorney with a CPA and CFP® professionals.

The Special Needs Trust must:

  1. Not be funded by the disabled person with his or own assets;
  2. Be managed by a trustee and successor trustee other than the person with the disability;
  3. Give the trustee complete discretion to provide whatever assistance is needed;
  4. Not give the person with the disability more income or resources than permitted by the gov’t ;
  5. Not replace the items and services provided by gov’t benefit programs;
  6. Define what “supplementary” means as it relates to the person with the disability;
  7. Provide a letter of intent that specifies what kind of caregiver would want for the disabled person.
  8. Who should receive the remainder of the trust after the individual with the disability dies;
  9. Include choices for successor trustees.

Funding of a Special Needs Trust require the input of a CPA with Gold standard planning advice of a    CERTIFIED FINANCIAL PLANNER™.  The trust can be funded much like any other trust with a wide range of assets, including cash, stock, personal property, and real estate.  It also can be the owner and beneficiary of a life insurance policy.  Each client’s situation is unique and requires the input of your professional team.  For more information, contact Northington Investment Group at 501.993.0167 or Stephen.Northington@lpl.com.  LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.

 

 

 

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