Thanks, I actually had a friend refer me to a guy today who specializes in special needs cases, so I am going to get them to setup a meeting with him and go from there.
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Setting up a Trust
- Thread starter FCXoptions
- Start date
First, they have to get a conservatorship "A conservatorship is a court case where a judge appoints a responsible person or organization (called the “conservator”) to care for another adult (called the “conservatee”) who cannot care for himself or herself or manage his or her own finances."
so then, could our friend the relative be a conservator and wouldn't that be the first order of business? and, can the conservator make investment decisions and withdraw money from accounts? Or would that be a simple matter of power of attorney?First, they have to get a conservatorship "A conservatorship is a court case where a judge appoints a responsible person or organization (called the “conservator”) to care for another adult (called the “conservatee”) who cannot care for himself or herself or manage his or her own finances."
so then, could our friend the relative be a conservator and wouldn't that be the first order of business? and, can the conservator make investment decisions and withdraw money from accounts? Or would that be a simple matter of power of attorney?
Parents defensively need to speak to someone who has some experience with conservatorship. I am sure there are some local differences but usually conservator gets 5 powers out of 7. I think that is why it is called "limited conservatorship".
What powers can a limited conservator ask for?
A limited conservator may ask the court to give you the following 7 powers:
1. Fix the conservatee’s residence or dwelling
2. Access the conservatee’s confidential records or paper
3. Consent or withhold consent to marriage on behalf of the conservatee
4. Enter into contracts on behalf of the conservatee
5. Give or withhold medical consent on behalf of the conservatee
6. Select the conservatee’s social and sexual contacts and relationships
7. Make decisions to educate the conservatee
Usually judge doesn't grant #3 and #6 but in reality #3 falls under #4 since marriage is a contract.
Once 5 powers granted to conservator (usually close relative) that person makes all decisions on behalf of conservatee.
Special Needs Trust (SNT) serves different purpose.
Usually disabled person upon reaching adult age will get some kind of medical insurance and social security.
In the event that this person outlives his parents without SNT he/she will inherit some assets and state will stop paying for medical insurance and social security benefits until inherited assets will be exhausted.
SNT need to be set in the way that it would not disqualify person from getting state benefits.
I am sure there is a lot more information online. I am just a CPA.