As you get older, you may start to worry about what will happen to your child if you pass away. When your child was younger, the reality that they had special needs wasn’t as serious to you. However, over time, you’ve realized that not being there could make their life very difficult.
You have many questions that have to be answered. You need to know who will care for them, how they’ll support themselves and to understand how they’ll get to appointments. You want to know how they’ll survive when you’re not longer there to help.
You should start considering a special needs trust for your child
A special needs trust is also known as a supplemental needs trust. It’s created to protect and hold financial assets for your child, who is a disabled beneficiary. By keeping funds in this trust instead of giving them to your child directly, you can protect your child’s access to government benefits, which is one of the most significant benefits of a special needs trust.
A special needs trust is a legal structure that allows a third party to hold assets for your child. The trustee is legally obligated to make decisions in the best interests of the beneficiary, so you can trust that the assets you place in their care will be used in the way they were intended.
The trustee oversees the distribution of assets, which helps your child get what they need without having to manage their own finances. This is particularly important in cases where a special needs child may not be able to understand finances or be able to manage them well on their own.
You get to choose your trustee. It is usually a wise choice to select someone who is going to be objective but have your child’s best interests at heart. You may need to name two or more trustees in the case the first is unable to serve.
If you have a disabled child, consider implementing a special needs trust sooner rather than later
If you have a child with special needs, setting up a trust is a smart choice. Doing so sooner gives you longer to add assets and make arrangements, so you can be confident that they’ll be cared for in your absence. Your attorney will help you start the process of opening a special needs trust and guide you through funding it and making sure it’s legally binding.