A trust efficiently enables parties to transfer assets between one another. However, the law also allows these documents to serve the long-term needs of others. For years, trusts have been used for parties to care for those with special needs.
A seasoned trusts attorney can help you set up a special needs trust in Lansing. These documents can work toward ensuring the safety and comfort of loved ones.
Although a trust allows the transfer of property between two parties, it does not do so in a direct transfer. Instead, the trust maker sends property to a trustee, who handles the property until the time comes to send it to the beneficiary. Because trust property remains in the trust until a stated time, that property enjoys protection against abuse or waste. At the same time, a steady release schedule can ensure that beneficiaries retain a consistent level of income. This can have especially useful applications for special needs trusts.
State law outlines how a party can create a trust. Under Michigan Estates and Protected Individuals Code § 700.7401, parties can create a trust by transferring assets to a trustee with instructions for distribution to another party at a future date. So long as the trust maker intends for the transfer to happen, the law presumes that the trust is valid. This could help people with special needs to retain a steady income while protecting their rights to collect benefits. An attorney in Lansing could provide more information about the process behind creating a trust.
Trusts can be beneficial for those who care for someone with special needs, especially if they are unable to properly handle money on their own. One benefit to providing for another person’s care through a trust is that the trustee can oversee the distribution of the assets. Further, this trustee has a duty under the law to distribute funds according to the language of the trust. This serves both to protect the assets and ensure that the funds are not lost.
In addition, receiving income on a schedule through a trust can help make those with special needs eligible for government benefits. Programs such as SSI and Medicaid measure a person’s assets when determining their eligibility. Holding assets in a trust could help to limit the impact of this income when helping people to receive the essential benefits.
Creating a trust for those with special needs or for children creates a safety net that can help provide for their future in a structured manner. Although they might not be able to provide for their own needs, you could create a long-term plan for their benefit.
An attorney can help you determine if creating a special needs trust in Lansing is right for you and ensure financial stability for your loved ones. Reach out today to learn more.
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