Understanding the Two Different Types of Special Needs Trusts in Texas

 Posted on April 30, 2024 in Estate Planning

Dallas Estate Planning LawyerIf you have a loved one with special needs, you likely want to do everything possible to protect his or her future to the greatest extent possible. When it comes to special needs trusts in Texas, it is important to understand what options are available for your loved one. An option you may consider is creating a special needs trust. With two different options in Texas, special needs trusts serve as important tools for safeguarding the financial future and well-being of those who have disabilities, ensuring they can maintain eligibility for important government benefits while still receiving supplemental support. If this sounds like something you are interested in pursuing for your family member, contact an attorney to get started. 

At Andrew Dunlap Attorneys, PLLC, Attorney Dunlap possesses over 45 years of litigation experience in various areas of law. With nearly five decades of experience, Attorney Dunlap has learned a thing or two about providing competent legal guidance to clients. With a proven track record, let Attorney Dunlap get to work for you today.

First-Party Trusts

First-party trusts are established using the assets of the individual with special needs. These trusts are usually created when an individual with a disability receives a lump sum of money, such as through an inheritance or personal injury settlement, and needs to preserve those funds while maintaining his or her eligibility for government benefits like Medicaid. First-party trusts are required to follow strict guidelines set by state and federal laws. These important guidelines must be followed, and your attorney can help ensure that is exactly what happens. 

Third-Party Trusts

On the other hand, third-party trusts are established using assets that do not belong to the individual with special needs. Instead, these trusts are commonly created by family members or loved ones to provide supplemental support and enhance the beneficiary's quality of life without risking the loss of eligibility for important government benefits. By carefully structuring a third-party trust, families can ensure that their loved one with special needs receives ongoing financial support and care tailored to his or her unique circumstances. 

Contact Our Dallas, TX Special Needs Trust Attorney

Approaching the estate planning process can be intimidating, especially if this is your first time handling a matter like this. Whether navigating the complexities of a first-party trust or crafting a third-party trust, seeking a lawyer's guidance is essential. For assistance, you can contact the Dallas, TX special needs trust lawyers at Andrew Dunlap Attorneys, PLLC. Call 972-807-6357 for a private consultation.

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