You’re getting older, and you know that there will come a time when you won’t be able to care for your child any longer. They have special needs, and you’ve cared for them your entire life.
You want to make sure that they will have support when they need it in the future. It is essential that you start planning now. You can start doing so with a special needs trust.
A special needs trust is a special kind of trust that allows your beneficiary to use property held in that trust without it affecting their right to government benefits. This is one of the major benefits of this trust, because your child can continue to enjoy your assets and support without losing their needed benefits.
When your assets are in a trust, they are not in your name. Likewise, they’re not in your child’s name, either. They are held by a trustee. That individual takes care of distributions to your child when they’re needed, so that they have access to additional funds or assets without having to claim them as income. Money that is held in a trust does not count toward qualifying for public assistance.
You should know that special needs trusts are irrevocable and cannot be taken by creditors or in the case of a lawsuit against you or your child. This is one great way to protect your assets and your child in the future. Our website has more information to help you choose the trust you want to use.