If you have a child with special needs, you know how important it is to make sure they always have guidance and support. They may need someone to care for them even after you are gone, so it’s vital to make plans for a guardian and to look into a special needs trust.
A special needs trust is designed to allow a disabled individual to use the property in the trust without affecting their needs-based governmental benefits. For instance, you could provide thousands of dollars for your loved one to use from the trust, but since it’s not in their name, the government won’t include the trust funds when calculating your child’s assets.
Since the money in a trust doesn’t count toward qualifying for public assistance, your child will be able to receive the benefits of the trust without risking losing an income or medical benefits that may be essential to providing them with the support they need throughout their daily life. They can rest easy knowing that they have the benefits they need while also having extra support.
Special needs trusts are irrevocable, which is important for two reasons. First, it means that the trust cannot be closed by the creator after it is set up. The funds will always be designated to go to your child. Second, the trust is protected against lawsuits and creditors. If your child is sued or faces a lawsuit for any reason, the money in the trust won’t be accessible.
These are great reasons to consider setting up a special needs trust for your child. Our website has more on protecting those you love with trusts during the estate planning process.