A special requirements trust is an estate planning tool utilized to allow assets to be kept in trust for the benefit of a physically or psychologically challenged individual, or a person with a chronic or gotten health problem. We describe four reasons to think about creating a special needs trust.
This type of trust allows you to offer a resource to spend for any requirements over and above the basic advantages that might be offered by the government. There are four reasons to consider working with a trust attorney to establish an unique needs trust for your liked one with a special needs or illness.
1. Minor Children
Special needs trusts permit you to establish a source of funds for your child that can supplement, without replacing, their federal government advantages. As an outcome, the government advantage programs would pay for your child’s basic, important needs while a special needs trust can pay for the “additionals” that are not covered by federal government programs. This type of planning assists to guarantee that your child’s quality of life will be the very best possible in case you were no longer there to offer them.
2. Not Able to Manage Money
If you have a loved one with unique requirements who is unable to manage their finances without assistance, a special needs trust allows the grantor, the individual establishing the trust, to designate a trustee to disperse and even handle the cash as needed.
3. Government Benefits
An unique needs trust permits a person to receive money without disrupting any need-based federal government advantages. Otherwise, a gift or inheritance as low as $2,000 may trigger a suspension or loss of benefits.
4. Supplying Income
A special needs trust permits you to offer an income for ‘extras’ that are not being provided with government advantages. While programs such as Supplemental Security Earnings (SSI) may offer sufficient for standard food, shelter and health care that the recipient may be entitled to get, the trust may be used to spend for pastimes, extracurricular activities or even a getaway to improve their quality of life.
If you have a liked one with a disability or persistent health problem, deal with an estate planning attorney to guarantee that your estate plan consists of a provision for their unique needs.