Ensuring that the funds established for a special needs person are properly spent is all in the drafting of the language of the trust. It has to comport with the federal and state guidelines and Medicaid guidelines as well, which tend to be different than just your standard IRS guidelines. Usually the funds can be spent for very specific things. Often, people adhere to the HEMS standard, which is health, education, maintenance and support standard. There are some nuances in there. The individual who has a developmental disability, cannot direct any of those distributions. It has to be at the sole discretion of the trustee and sole benefit of the beneficiary.
If A Spouse Or A Parent Dies, What Are Some Of The Effective Ways That We Can Protect Remaining Assets For A Living Parent Or Spouse In Texas?
This all depends on what type of protection you need. A trust is an effective way to protect the living parent or spouse. That being said, it depends on what your goals are.
If there are debts that are going to eat up the assets, then I would certainly do permissive notice to those creditors giving them four months’ time. After that, they would receive a letter barring them. That is the law. If there are debts, I would probably plan prior to that spouse or parent dying for probate avoidance in order to make sure that we can lessen — probate is a public forum. Everything that we do in the probate arena is public, so your will is a public document. Creditors will look at these records.
What Happens In The Administration Of An Estate When Someone Dies Who Had Proper Estate Planning Documents In Place In Texas?
The administration of an estate depends on what is in the estate and how the estate plan is set up. If a person is able to avoid probate through using all the available non-probate vehicles, there will be no reason to probate. Probate is never cut-and-dry.
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