Estate planning when you have a child with a disability can be exceptionally painful and scary. No one wants to think about what could happen to their child when they are no longer here to take care of them. There are several tools that exist to help people in this situation. One is called a Special Needs Trust.
What Is a Special Needs Trust?
A special needs trust is a trust created for person with special needs. If set up properly, the trust allows the beneficiary to receive funds from the trust as well as any government benefits they are eligible for.
What are the Benefits of a Special Needs Trust?
Often times if a person acquires assets through inheritance, they can be disqualified from receiving any government benefits they had or would receive in the future. The creation of a special needs trust allows for leaving a loved one with assets that could help pay for their care/lifestyle once you are no longer here to provide that for them. It allows the special needs child to receive any government benefits they would be eligible for regardless of the amount of assets they hold in the trust. This can help to dramatically improve the quality of your loved ones life.
Choosing the Trustee Carefully
Being that special needs trusts are designed specifically for people who either have a physical or mental disability, it is important to choose the trustee wisely. You will want to choose someone who is trustworthy and willing to fulfill your ultimate wishes for the use of funds.
Special needs trusts can be a very useful estate planning tool when you have a loved one with a disability. It is important to speak to a qualified estate planning attorney if you are considering setting one up. A qualified estate planning attorney will walk you through the different options available & help to ease your mind!