There could come a time when you realize that a special needs trust is an absolute must. This a big part of an estate plan if you have an heir or beneficiary who lives with a physical or mental disability.
If your loved one does not have the capacity to manage his or her finances after your passing, you can use a special needs trust to ensure your loved one’s well-being.
The many benefits
The primary benefit of a special needs trust is the ability to provide your loved one with financial structure in your absence. However, it doesn’t stop there.
For example, you can also use a special needs trust so that your loved one does not lose government benefits, such as Medicaid or Supplemental Security Income. With only a will in your estate plan, there is no guarantee that this won’t happen, particularly if your loved one’s inheritance results in disqualification for government benefits.
Choosing a trustee
It’s one thing to know that you want to create a special needs trust to help your loved one in the future. However, since you won’t be around, you need to name a trustee who is responsible for the management and administration of funds.
This a big part of creating a special needs trust, so make sure you think long and hard about who makes the most sense. This person needs to be both compassionate and trustworthy.
A special needs trust will give you and your loved one peace of mind. Once you have a clear idea of what a special needs trust can do for you and your loved one, you can learn more about the process of creating a legal document that meets your family’s specific needs.