How to Establish a Special Needs Trust Under Oregon Law

How to Establish a Special Needs Trust Under Oregon Law

Establishing a Special Needs Trust (SNT) under Oregon law is an essential step for families looking to ensure financial stability and support for a loved one with disabilities. A properly drafted SNT can protect assets and ensure that individuals with special needs continue to qualify for government benefits such as Medicaid and Supplemental Security Income (SSI). Below are the steps to help you establish a Special Needs Trust in Oregon.

1. Understand the Types of Special Needs Trusts

Oregon recognizes different types of special needs trusts, each serving unique purposes:

  • First-Party Special Needs Trust: Funded with assets belonging to the individual with disabilities, often as a result of a personal injury settlement or inheritance.
  • Third-Party Special Needs Trust: Funded by family members or friends, intended to enhance the quality of life for the individual without affecting their eligibility for public benefits.

2. Consult with an Attorney

It is highly advisable to consult with an attorney experienced in estate planning and special needs law in Oregon. An attorney can offer valuable insights into the legal requirements and help you navigate the complexities of trust creation while ensuring compliance with state and federal laws.

3. Draft the Trust Document

Your attorney will help draft the trust document, which should include the following key elements:

  • Name of the Trust: Clearly state that it is a Special Needs Trust.
  • Trustee Designation: Appoint a trustworthy individual or institution to manage the trust.
  • Beneficiary Information: Clearly identify the individual with special needs as the sole beneficiary.
  • Distribution Guidelines: Outline how and when funds can be distributed, ensuring that it does not interfere with public assistance benefits.

4. Fund the Trust

Once the trust document is drafted and signed, you can fund the trust. This can include cash, property, or other types of assets. For a first-party trust, be aware that Medicaid may require repayment of benefits upon the beneficiary's passing, so it's crucial to discuss these implications with your attorney.

5. Notify Relevant Agencies

After funding the trust, inform relevant agencies about the establishment of the Special Needs Trust. This may include state Medicaid officials or Social Security Administration representatives, depending on the nature of the benefits your loved one receives.

6. Maintain Accurate Records

Keeping accurate and up-to-date records of all transactions made within the trust is vital. This will help ensure compliance with legal requirements and provide necessary documentation if questioned regarding benefit eligibility.

7. Regularly Review the Trust

Life circumstances and laws may change over time, so it’s essential to periodically review the Special Needs Trust. Consult with your attorney to ensure it continues to meet the needs of the beneficiary and complies with current laws.

Conclusion

Establishing a Special Needs Trust under Oregon law is a crucial step toward securing a stable financial future for individuals with disabilities. By understanding the types of trusts, consulting with an experienced attorney, and following the proper steps, you can provide much-needed support to your loved one while safeguarding their eligibility for public assistance programs.