Special Needs Trust
A Special Needs Trust (SNT) is designed to provide for disabled children. This type of trust offers financial support for the child throughout their life without affecting public benefits. An SNT holds assets on behalf of someone with disabilities to supplement money and services. Because these assets are not counted for government programs, there are regulations on how money is disbursed.
There are two types of SNTs. The first is a first-party or self-settled SNT. This trust is created with assets that belong to the beneficiary, usually due to an injury settlement or inheritance. When the beneficiary dies, any remaining funds must be used to reimburse Medicaid. A third party SNT is created with assets from parents, friends, or relatives. Funds remaining in the trust are not used to reimburse Medicaid.
Special needs trusts can be very complicated. A trust attorney can help you set up an SNT and a life care plan that will provide financial support and services for your child.
Irrevocable Life Insurance Trusts (ILITs)
This type of trust is designed to move the proceeds of your life insurance policy outside of your state. The primary purpose of this trust is to avoid or reduce estate taxes. Once the proceeds are outside of the estate, they are no longer included in tax calculations.
There are many forms of trusts available in Nevada. Each type of trust can be customized to serve a purpose in accomplishing your goals. Kurt and Blake Johnson, trust attorneys in Las Vegas, can help you explore your options for preserving your legacy.