New Jersey special needs trust attorney Christine Matus (https://matuslaw.com/discretionary-support-trust/) of The Matus Law Group has recently published a comprehensive article titled "Discretionary Support Trusts." This publication aims to shed light on the nuances of discretionary support trusts and their potential benefits for families with special needs individuals.
New Jersey special needs trust attorney Christine Matus explains that creating a special needs trust can be a powerful tool for ensuring the financial well-being of children with special needs. These trusts allow parents to transfer assets to their children without jeopardizing eligibility for essential benefits like Supplemental Security Income (SSI), Medicaid, and subsidized housing. "A special needs trust allows you to pass down your assets without disqualifying your loved one from the benefits they depend on," says Matus.
In her article, New Jersey special needs trust attorney Christine Matus delves into the specifics of discretionary trusts and discretionary support trusts. She explains that with a discretionary trust, the trustee has the freedom to manage the trust at their own discretion, adhering to the settlor's wishes while selecting beneficiaries and determining the timing of fund disbursements. This type of trust can be particularly advantageous in safeguarding family assets from being divided in divorce settlements and in assisting young beneficiaries with financial management.
Matus emphasizes the importance of choosing the right trustee when establishing a trust for a special needs child. "Choosing the right trustee to assist with your special needs child is of vital importance," she notes. The trustee's role involves not only managing the trust but also ensuring that the trust remains in compliance with legal guidelines and maximizes the benefits for the beneficiaries over time.
The article highlights the critical distinction between mandatory and discretionary trusts. With a mandatory trust, the beneficiary can request funds, and the trustee is obligated to comply. In contrast, a discretionary trust grants the trustee the authority to decide whether or not to disburse funds, which can be particularly beneficial for individuals with special needs. This flexibility allows the trustee to act in the best interest of the beneficiary while preserving their eligibility for benefits like SSI, which has strict resource limits.
New Jersey special needs trust attorney Christine Matus also addresses the potential downsides of discretionary trusts. These include the complexity of managing the trust, potential discontent among beneficiaries, trust and control issues, maintenance costs, and tax implications. She urges families to weigh these considerations carefully and seek professional advice to ensure that establishing a discretionary trust aligns with their financial and familial goals.
For families considering setting up a discretionary support trust, this article serves as an invaluable resource. It provides a detailed overview of the benefits and challenges associated with these trusts, helping families make informed decisions about their estate planning.
To learn more about discretionary support trusts and how they can benefit your family, Christine Matus and her team at The Matus Law Group are available to provide personalized guidance and support.
About The Matus Law Group:
The Matus Law Group was built around compassion and understanding for special needs families. Recognizing the unique challenges these families face, the firm is dedicated to helping parents create estate plans that ensure their children lead fulfilling lives. The team at Matus Law Group is committed to providing ongoing advice and assistance to ensure that trusts are managed effectively and in compliance with the law. For further information or to schedule a consultation with a professional New Jersey estate planning attorney, contact The Matus Law Group.
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