Three Methods To Switch Actual Property To A Particular Wants Belief – New York Property Planning Lawyer Weblog – Nov 27, 2020

Special Needs Trusts do the valuable job of qualifying an individual for government benefits such as Medicaid and Medicaid Additional security income (SSI) while paying for services in addition to what the government can offer. When you make the decision to set up a special needs trust for a loved one, many assets are unlikely to become part of the trust until after you die. There are several commonly used methods of transferring these assets, including living trusts, wills, and other types of beneficiary designation. This article describes some of the estate planning tools most commonly used to transfer real estate to a trust for special needs.

# 1 – beneficiary

Many different types of financial accounts, including retirement plans such as 401 (ks) and IRAs, life insurance, and securities, allow an individual to do so assign a beneficiary of property. This beneficiary then receives the money after the owner’s death. By assigning a special needs trust as a beneficiary, it is possible to pass an asset on without subjecting it to an estate audit. Remember, you need to list special needs trusts, not your special needs loved ones as beneficiaries. Identifying your loved one as a beneficiary could jeopardize their receipt of Medicaid or SSI.

# 2 – Revocable Living Trusts

Some people choose to use living trusts to fund special needs trusts. The Living Trust Terms specify the property that will be given to the Trust for special needs rather than directly to the beneficiary. One of the key benefits of using a revocable living trust to transfer assets is that inheritance procedures do not require trust assets to transfer, which can be both costly and time consuming. Any property not held by the revocable living trust will be passed down in accordance with will or probate laws. Therefore, it is important that people who choose to use a living trust to pass on assets also create a will.

# 3 – wills

The most popular estate planning documents, wills, can be created to transfer real estate to a trust for special needs. Wills offer great flexibility. While some people choose to create them themselves, others seek the help of a lawyer. Wills can also be revised at any time. One of the major drawbacks of using wills to transfer property to a trust for special needs is that the assets may go to inheritance, which can ultimately reduce the assets available to help your loved ones. As a result, many people choose to use revocable living trusts instead of will to transfer assets to a trust for special needs.

Contact an experienced estate planning attorney

Trusts are one of the most nuanced areas of estate planning. If you have any questions or concerns about the role a trust can play in your estate plan, speaking with a knowledgeable attorney can be hugely helpful. Contact the Law firm Ettinger today to schedule a free case assessment.