If you are worried about what will happen to a loved one with special needs when you are gone, creating a trust can help quell your fears. Your loved one may be in a position to particularly benefit from a special needs trust.
You can be sure your loved one will be well provided for with a special needs trust, unlike if you were to use a will to pass on your assets. Here are a few reasons to include a special needs trust in your estate plan if you have a loved one with special needs.
You will not affect their eligibility for government support
One of the primary advantages of a special needs trust is that it can protect your loved one’s eligibility for government benefits such as Medicaid and Supplemental Security Income (SSI). These programs have strict income and asset limits, and exceeding them can result in ineligibility or a loss of benefits. Trust proceeds will provide financial support to your loved one while still allowing them to qualify for government benefits.
A special needs trust offers asset protection capabilities
As an irrevocable trust, the terms of a special needs trust cannot be altered or modified. They will remain in place for as long as the trust exists, so you will not have to worry that things will change when you are no longer around.
In addition, the assets in a special needs trust are safe from third parties, such as creditors or parties to a divorce, since they legally belong to the trust. They cannot be sold or transferred to third parties as a result.
You will also not have to lose sleep over the misappropriation or misuse of trust assets since the trust administrator (the trustee) has a legal obligation to always act in the best interests of the trust and its beneficiaries.
Learn more about how special needs trusts work
A special needs trust can provide numerous benefits for a loved one with a disability or special needs. To fully understand how these benefits apply to your specific situation and what you need when establishing a special needs trust, it helps to have legal guidance.