Having a solid estate plan in place is essential, especially if you want to make sure a disabled loved one is taken care of after your passing or incapacitation. A Special Needs Trust is created specifically for the benefit of a person with physical or mental disabilities who lacks the capacity to manage their own finances.
How Will A Special Needs Trust Help My Loved One?
Special needs trusts are often created to ensure that a beneficiary won’t lose government assistance such as Medicaid, SSI, vocational rehabilitation and other vital benefits. Leaving assets to your disabled loved one without a trust can disqualify them for these types of government assistance programs.
Typically, a Special Needs Trustee does not give money directly to a beneficiary. Instead, they use the trust assets to purchase certain necessities and extras for your loved one. A trustee can buy services and products for your loved one for vacations, hobbies, recreation, home furnishings, education, home companions and even minor items like toiletries.
The assets in a Special Needs Trust are also protected from creditors. If your estate or the beneficiary of the trust is sued and a judgment is awarded creditors cannot seize the assets in the Special Needs Trust. Using an experienced attorney who offers comprehensive estate planning services to create a Special Needs Trust ensures that all of your child’s needs are taken care of and their financial future is protected. Not only that, your attorney can assist you with other important estate planning matters such as drafting a will and business succession planning.
Choosing a Trustee
A Trustee is a person or entity you choose to be in charge of the assets in the Trust. The Trustee must comply with the Trust terms and responsibly manage and invest assets to ensure that the assets are used to their fullest potential. This is extremely important if the beneficiary relies on the Trust for his/her care and support. It’s much easier for another party to take control of your child’s money if assets are not administered by a trustee. The Trustee can make sure that your loved one is not victimized by unscrupulous people who may try to take advantage.
Carefully choosing the right Trustee for your child’s Special Needs Trust is vital. If a reliable, trustworthy family member or friend is not available, having experienced wills and trusts attorneys manage the assets in your loved one’s trust can give you peace of mind knowing that their best interests will be fully protected after you’re gone.
Why Do I Need An Attorney To Create A Special Needs Trust?
There are countless unforeseen circumstances that can impact your loved one’s financial future. Many important things you should consider when preparing a will may not even come to mind unless you seek the advice of an experienced attorney. At Carosella & Associates, our estate planning lawyers address your family’s specific needs and help you develop effective solutions to safeguard your loved ones’ financial future.
This blog was originally posted at https://carosella.com/the-advantages-of-setting-up-a-special-needs-trust-for-your-child/
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