In this episode of Law and Financial Order, Warner Wealth advisor Robyn Wolcott and attorney Erin Duques sit down with special guest Colleen Masse to break down the world of special needs trusts (funded by the person with a disability) and supplemental needs trusts (funded by others)--- what they are, why they matter, and how they protect essential benefits like Medicaid and SSI.
Colleen -- who leads the Special Needs Planning Department and Fiduciary Services at Czepiga Daly Pope & Perri -- explains the real-life impact of strict asset limits, shares how trustees can manage spending (yes, even with a debit card!), and dives into smart ways families can fund these trusts through life insurance, IRAs, and long-term planning.
She also discusses common pitfalls families face, including situations where a well-meaning relative sets up a third party supplemental needs trust but forgets to update a beneficiary designation -- causing the individual with a disability to inherit assets outright. Even modest inheritances can jeopardize essential benefits. Colleen also highlights real-world scenarios where someone with a disability may receive funds through a settlement or lawsuit, emphasizing the importance of proper trust setup.
A must-listen for anyone planning for a loved one’s future with clarity—and confidence!
Action Steps Discussed:
• Confirm that IRA and account beneficiary designations point to the right trust.
• Explore funding strategies with financial advisor Robyn Wolcott.
• Use planning tools to estimate long-term expenses and funding needs.
If you're curious to hear more, you can listen here. Law and Financial Order - Podcast - Apple Podcasts
*Erin Duques is not affiliated with or endorsed by LPL Financial and Warner Wealth.
**Robyn Wolcott, James Warner, Warner Wealth and LPL Financial do not provide legal advice or services. This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation