Special needs planning is something that millions of individuals have done in the past, and many more will tackle in the future.
We discuss special needs planning in great detail on our website, making note of why it’s so important:
If you are the parent of a child with special needs, you undoubtedly worry about your child’s future. Fortunately, many children with special needs are able to live relatively independent lives when they reach adulthood; however, most will continue to need specialized care. That specialized care can be costly, as you likely know.
Once you come to the conclusion that special needs planning is a must, you can turn your attention to the process for getting started. And for most people this means the creation of a special needs trust. There are many benefits of this estate planning tool, including the following;
- Providing for a loved one after you’re gone: Upon your death, you want to make sure that your loved one is taken care of. With a special needs trust, you can do just that. For example, you can mark assets to be used for specific purposes, such as providing the person with a comfortable place to live.
- Name a trustee: With a special needs trust, you’re able to name a trustee to manage the assets of the trust and distribute them accordingly. This is particularly important if your loved one is not able to independently manage their own finances.
- Maintain government aid: The problem with direct gifting or estate planning with a will is that it can disqualify your loved one for government aid, such as Medicaid and Supplemental Security Income (SSI) among other types. With a trust, this doesn’t happen because the assets are kept in a trust for the benefit of the individual.
While these are among the top benefits of a special needs trust, there are others you may come to find as you consider the process and what it entails.
If you want to learn more about special needs planning, with an eye toward creating a trust, contact us for more information and guidance.
- Special Needs Planning and Direct Gifting: Take Caution - August 6, 2020
- Estate Planning With Your Spouse: Ask These Questions - August 4, 2020
- How to Know if Your Estate Plan Requires Attention - August 3, 2020