potterlaw

North Carolina and Kentucky Estate Planning Attorneys

NC (704) 944-3245
KY (606) 324-5516
Attend a Free Seminar THIS IS AN ADVERTISEMENT
  • Home
  • About Us
    • About Our Firm
    • Attorney and Staff Profiles
  • Practice Areas
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Family-Owned Businesses & Farms
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • Pet Planning
    • Probate
    • Special Needs Planning
    • Trust Administration
    • Estate and Gift Tax Figures
  • Elder Law
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Coping With Alzheimer’s
    • Hospice Care
    • Medicaid Planning
    • Nursing Home Planning
    • Veterans Benefits
  • Communities We Serve
    • Kentucky
      • Boyd County
        • Ashland
        • Florence
      • Kenton County
        • Covington
        • Independence
        • Fort Mitchell
    • North Carolina
      • Mecklenburg County
        • Charlotte
        • Huntersville
        • Davidson
  • Resources
    • Definitions
    • DocuBank
    • Elder Law
      • Elder Law Reports
      • Elder Law Links
      • Local Elder Law Resources
        • Ashland Elder Law Resources
    • Free Estate Planning Seminars
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Estate Planning FAQ’s
      • Trust Administration & Probate Frequently Asked Questions
      • Legacy Wealth Planning FAQ’s
      • Frequently Asked Questions for Families Without an Estate Plan
      • LGBT Estate Planning Frequently Asked Questions
    • Is Your Estate Plan Outdated?
    • Kentucky Probate Resources
      • Ashland, Kentucky Probate Resources
    • North Carolina Probate Resources
      • Huntersville, NC Probate Resources
    • Newsletters
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Elder Law Reports
      • Estate Planning for Niches
      • Trust Administration
  • Contact Us
  • BLOG

3 Types of Special Needs Trusts

December 16, 2011 by John Potter

A special needs trust is a specific kind of trust that can be created to benefit children and adults with disabilities. Whether you’re caring for a special needs child or have a family member who has developed a medical problem and needs a trust to ensure their financial safety, there are several kinds of several needs trusts available to you. However, special needs trusts differ by state, and each state has different rules that apply.

Type 1: Family Trust. A family trust is usually created by the parents of a child with disabilities. These trusts can be testamentary, meaning they are created through the parent’s last will and testament, or living  or “inter vivos” trusts, meaning the parents create it while they are still alive. Family trust property, however, usually cannot be used for basic needs such as housing or food, as this may interfere with government benefits from Social Security and Medicaid.

Type 2: Pooled Trust. A pooled trust is one created by a non-profit agency for the benefit of an individual with special needs and funded by family members or, in some cases, with the individual’s funds.  The individual’s family, such as grandparents, aunts or uncles, can place property in the trust, but the family does not have the same type of control over the assets as with a Family Trust.

Type 3: Court Ordered Trust. Also called a “first-party” special needs trust, these can only be established by a court, a legal guardian, or a parent or grandparent of a person with disabilities. In these trusts, the person with disabilities actually owns the trust property, but the person must be under 65.

  • About
  • Latest Posts

John Potter

Latest posts by John Potter (see all)

  • What Type of Trust Protects Assets? - February 20, 2019
  • Our Ashland Trust Attorney Explains How a QTIP Trust Works - February 18, 2019
  • What Happens If I Leave Assets Out of My Living Trust? - February 15, 2019

Filed Under: Special Needs Planning Tagged With: court ordered trust, family trust, pooled trust, Special Needs Trusts

Other Articles You May Find Useful

The Potter Law Firm
What Is a Third Party Special Needs Trust?
special needs planning
Planning For a Child With Special Needs
The Potter Law Firm
Special Needs Trust in Charlotte North Carolina: When Would I Need It?
The Potter Law Firm
How Much Does a Special Needs Trust Cost?
The Potter Law Firm
What Is a Supplemental Needs Trust?
The Potter Law Firm
Special Needs Call For Specialized Planning

Free Estate Planning Worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Subscribe to Our Blog

  • This field is for validation purposes and should be left unchanged.

Testimonials

My husband and I selected Ms. Potter to assist with our small business. She responsive and attentive every time I have a question or need assistance, and is extremely knowledgeable and able to answer any legal question I have had. I know I can count on Ms. Potter for all of my business legal needs and I would highly recommend her to anyone needing legal assistance with such.
Jillian
John Potter has been a real pleasure to work with. He is very knowledgeable and explains things in a very simplistic manner so the average person can understand how/why the laws are written. He is very attentive and asks questions in such a way that not only helps him understand your goals, but also helps you think about what type of goals and expectations you should be considering. Exemplary client service.
David J.
Overall The Potter Firm was very professional. They took what could of been a very complicated process and were able to break it down so it was a lot easier to understand. We are confident we now have made the right decisions in our estate planning. Good firm to work with.
DKS & KMS

Where We Are

Ashland

ASHLAND
1620 Carter Avenue
Ashland, KY 41101-7631
Phone: (606) 324-5516
Fax: (606) 324-4766

Charlotte

CHARLOTTE
15720 Brixham Hill Avenue
Suite 300,
Charlotte, NC 28277
Phone: (704) 944-3245

Huntersville

HUNTERSVILLE
11330 Vanstory Drive
Huntersville, NC 28078
Phone: (704) 944-3245

Northern Kentucky

NORTHERN KENTUCKY
7310 Turfway Road
Suite 550,
Florence, KY 41042
Phone: (859) 372-6655

Office Hours

Monday8:30 AM - 4:30 PM
Tuesday8:30 AM - 4:30 PM
Wednesday8:30 AM - 4:30 PM
Thursday8:30 AM - 4:30 PM
Friday8:30 AM - 3:00 PM

Map/Location

potter_sidbr_map

Search

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

The information on this website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. The information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

Privacy Policy | Terms of Service | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2019 American Academy of Estate Planning Attorneys, Inc. THIS IS AN ADVERTISEMENT