When planning your estate, you may be wondering how to take care of loved ones with special needs. A special needs trust is one option that allows you to set aside assets specifically for their care and support.
Special needs trusts (SNTs) are legal arrangements designed to manage assets for the benefit of an individual with special needs without jeopardizing their eligibility for important government assistance programs. Benefits of establishing an SNT include the following.
Financial protection for your loved one
A special needs trust allows the assets you set aside to be protected and dedicated solely to your loved one’s care. This legal arrangement keeps creditors or other interested parties from accessing the funds, offering security that these resources will remain available for their specific needs.
Preserving eligibility for government assistance
Individuals with special needs often depend on programs like Medicaid or Supplemental Security Income (SSI). Inheriting assets directly can put their eligibility for these benefits at risk. A special needs trust helps safeguard their access to these vital programs while providing additional financial support.
Reliable management of funds
A special needs trust is administered by a trustee who follows the terms of the trust to oversee the use of its assets. This structure offers a dependable way to handle finances for your loved one, particularly if they are unable to do so themselves. The trustee can allocate funds for housing, medical care, or other needs.
Flexibility to adapt to future needs
A special needs trust can be customized to fit your loved one’s circumstances and adjust as their needs change. This flexibility allows the trust to address new challenges or opportunities that may arise over time.
Obtaining legal guidance can be helpful when considering a special needs trust to better ensure it is properly set up for your loved one’s future.