What Is The Difference Between a Special Needs Trust and A Living Will in Oklahoma

In Oklahoma, a Special Needs Trust and a Living Will serve very different purposes, each addressing specific needs within estate planning and healthcare decision-making. Like any trust, will or other estate planning document, before you draft one its crucial to understand the purpose you are trying to serve as part of your estate plan.

Special Needs Trust in Oklahoma

A Special Needs Trust (SNT) is a type of trust designed to provide for the care and expenses of a person with disabilities without disqualifying them from government benefits like Medicaid or Supplemental Security Income (SSI). Here’s how it works and why it’s useful:

• Purpose: It holds assets for the beneficiary’s benefit without jeopardizing their eligibility for public assistance. Its used largely as a tool to make sure the assets its holds do not disqualify the beneficiary for government services.
• Funding: Usually set up by a parent, grandparent, or legal guardian. Funds in the trust can be used for medical care, personal expenses, education, and other quality-of-life expenses not covered by government benefits.
• Control: A trustee manages the funds and has discretion over how they are used, always in a way that does not interfere with the beneficiary’s eligibility for aid programs.
• Types of SNTs: In Oklahoma, you can establish a “third-party” SNT (funded by someone other than the beneficiary) or a “first-party” SNT (funded with the beneficiary’s own assets, often required when the beneficiary inherits directly or receives a settlement).

Living Will Or Advanced Directive

A Living Will (also known as an Advance Directive for Health Care) is a legal document that outlines a person’s healthcare wishes should they become unable to communicate their preferences. Key points include:

• Purpose: Primarily addresses end-of-life care decisions and outlines the types of medical treatment desired, such as resuscitation, mechanical ventilation, and other life-sustaining measures.
• Contents: Specifies whether to withhold or provide treatments and life-support measures if the person is terminally ill or in a persistent vegetative state.
• Control: While the living will document provides guidance, it often works alongside a healthcare proxy or power of attorney for healthcare, who can make decisions on behalf of the person based on their wishes.

Primary Differences Between The Two

• Use: A Special Needs Trust provides for a beneficiary’s financial and quality-of-life needs, while a Living Will focuses on medical care choices in end-of-life scenarios.
• Function: SNTs manage financial assets to avoid disqualification from government benefits, while Living Wills direct medical decisions if someone is incapacitated.
• Time of Use: SNTs are used throughout the lifetime of the disabled individual, whereas Living Wills typically apply only when a person is incapacitated and facing a life-threatening condition.

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Get Will And Trust Advice in Tulsa

Special Needs Trust and A Living Will are completely different documents found in a well ordered estate plan. Estate planning in Oklahoma requires an understanding of your needs. Its not a one size fits all kind of arrangement. What works for you and your family may not work for someone else. We look at your assets, family structure and your particular goal. A special Needs Trust in is financial in nature and safeguards assets for someone with disabilities. On the other hand, a Living Will is a healthcare document that ensures a person’s medical preferences are respected if they cannot voice them directly. For a free consultation with a Tulsa Oklahoma will and trust attorney from Kania Law Office call 918.743.2233.