If you have a loved one with special needs, you may be worried about their future. How will they get by when you are no longer around? Who will manage their finances and provide for them? How will they maintain their eligibility for government benefits?
A special needs trust can help you address these concerns and ensure a lifetime of care for your loved one. This type of trust allows you to set aside funds and assets specifically designated to support your loved one’s unique needs. It ensures a lifetime of care, providing a safety net that will extend beyond your lifetime.
Your loved one will still be eligible for government benefits
Unlike when you leave your loved one your estate through a will, a special needs trust will not affect their eligibility for government assistance programs, such as Medicaid and Supplemental Security Income (SSI). By carefully structuring the trust, you can ensure your loved ones continue to receive these essential benefits while also benefiting from additional resources.
The assets in the trust are safe from third parties
Assets in a special needs trust legally belong to the trust, not the beneficiary. This means that creditors, legal judgments or other external parties cannot access or seize those assets. They cannot be sold or transferred either.
You can rest assured that the funds designated for your loved one’s care and support are secure and will be utilized solely for their intended purpose.
A trust can help avoid asset mismanagement
You can appoint a trusted individual or professional trustee to manage the assets held within the trust. This helps ensure that funds are prudently invested, managed and disbursed in line with your loved one’s specific needs and long-term goals.
Get the necessary assistance
Seeking legal guidance when creating a special needs trust is crucial to ensure compliance with laws and regulations, maximize benefits and customize the trust to meet the specific needs of your loved one. Doing everything by the book will give you peace of mind and confidence that your loved one will be well cared for long after you are gone.