Do you have loved ones with special needs, and you’re wondering how they will survive after you’re dead? Worry not, because, in this post, we will show you how to protect your loved ones with a special needs trust fund.
A special need trust provides financial support for your loved ones after you die without much government interference. If you leave money or any estate directly for your loved ones with special needs and disabilities, they might get disqualified from benefiting from other government support.
However, leaving the money through a special need trust protects them from suffering such disqualifications after you’re gone.
How A Special Needs Trust Works
Special needs trust is essential in making sure that a person with special needs can freely inherit from family and remain eligible to benefit from government opportunities. It is specially designed for making funds available for people with disabilities while protecting their rights and eligibility for government benefits.
Usually, you’re expected to set up the trust for your loved ones and beneficiaries with disabilities while you’re still alive. This is because the trust owns, manages, and controls the trust assets after you’re gone and not the child. Also, having a special needs trust does not jeopardize their chances of benefitting from Supplemental Security Income (SSI).
How To Setup A Special Needs Trust
There are three people involved in setting up a special trust need. They include:
- A grantor (also called a settlor)- the person who creates the trust and makes funds available
- A beneficiary (the loved one with special needs or disability)
- A trustee – the person who manages and controls the trust funds for the beneficiary
The trust can be set up while the grantor is still alive or immediately after their death via provisions in their will. The grantor chooses someone who knows the beneficiary well- maybe a sibling, family member, or family friend- to serve as trustee.
Why Is A Special Needs Trust Important?
Special needs trust lasts till the beneficiary dies or when the available funds finish. Whatever be the case, special needs trust help you protect your loved ones with disability and gives you peace of mind knowing that your loved ones will be catered for while you’re gone.
A special need trust is drafted to help beneficiaries:
- Continue receiving government support even after they inherit their estate
- Safeguard the funds in the trust even if the beneficiary is sued.
- Have their essential needs met
- Manage their daily finances
- Live a good life
You can protect your disabled loved ones by creating a special needs trust for them while you’re still alive. Moreover, you can create a special trust for them in your will. While many online platforms can help you create special needs trusts for free, the entire process can be complicated. Therefore, you need the help of a professional attorney or consultant to complete the process.
To ensure you don’t miss any step, it is advisable to consult Serenitas Special Needs Planning. We are a fee-based financial planning company providing comprehensive special needs planning, lifestyle planning, budget planning, government coordination planning, and lots more. We work with you judiciously to complete your special needs trust in its entirety.