President Obama, in signing the 21st Century Cares Act into law at the end of 2016, has given many individuals with special needs across the country a very useful and benefit-saving planning strategy: the Self-Settled Special Needs Trust.
Individuals with disabilities, who have the capacity to do so, can now create their own self-settled trust to maintain their government benefits in the event of an inheritance or personal injury award without having to get a court order.
Previously, unless state law allowed it – which North Carolina law did not – individuals could not create their own self-settled special needs trust. They have to rely on a parent, grandparent, guardian, or judge to establish the trust for them. Now, individuals who have no living parents or grandparents and do not have or need a guardian, can create their own trusts without having to go to court – which could be a long and drawn-out process. This creates a “First-Party Trust” – which would still require Medicaid to be paid back after the individual passes – unlike a “Third-Party Trust.”
It also assists people who receive an inheritance or personal injury award which exceeds the $100,000 cap for ABLE accounts.
This sort of planning should not be taken lightly. Always consult an experience special needs planning attorney before moving forward with this type of planning.
Author Bio
Paul Yokabitus
Founder & Estate Planning Lawyer
Paul Yokabitus is the founder of Cary Estate Planning, where he helps North Carolina families protect what matters most through wills, trusts, probate, and special needs planning. Known for his “planning, not paperwork” approach, Paul turns complex legal concepts into clear, practical strategies so clients feel informed and confident at every step. He has been recognized as a Business North Carolina Legal Elite attorney and a Super Lawyers Rising Star, and was named to the Triangle Business Journal’s 40 Under 40. A graduate of Campbell University School of Law, Paul lives in the Triangle with his wife, Alix, and their two sons.
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Paul and his team at Cary Estate Planning are fully committed to creating a personalized experience to develop thorough and comprehensive estate plans. They value their clients and go above and beyond to make sure that no details are missed. I would highly recommend Paul to anyone looking to create an estate plan.
I was referred to Paul by my Real Estate Attorney and I could not say enough about how exceptional the client service has been from everyone I spoke to. The communication is prompt and I feel like they really took the time to answer all my questions and set things up exactly as I wanted, but also recommended things to make it easier on my family down the line.
After attending one of Paul’s estate planning seminars, my husband and I knew we wanted Paul to assist us with our estate planning. His honest, professional approach to this necessary part of life put us at ease with the process. We will continue to recommend Paul and Cary Estate Planning.
We had a great experience working with Paul Yokabitus and the team at Cary Estate Planning to set up our Will and Estate Plan. The process was clear and easy, and in the age of COVID, our signing session was very well done, easy, and safe.
The Cary Estate Planning team will make sure that you have the information you need to be confident in your estate planning decisions. I learned so much from videos, a one-on-one in-person consultation, the website, emails, and a newsletter mailed the old fashioned way. The fee is very reasonable given the importance of estate planning. No matter the size or number of your assets, don’t procrastinate like I did!
Paul is a masterful attorney. He’s very good at taking your intentions and defining that into a durable Trust and Will. Best of all he is as simple and plain-spoken as you like. Or as fast as intellectual as you may be. It’s all about your your speed and your desired outcomes. Would strongly recommend this firm.
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