A special needs trust is created to benefit a loved one who has a physical or mental disability. While you're able to assist this person when you're alive, you may have concerns about what will happen to them after your passing.
Fortunately, through the creation of a special needs trust, you can do your part in ensuring that your loved one is in a good position to continue living the life they're familiar with.
Here are some of the top benefits of creating a special needs trust:
- You will name a trustee: This person is responsible for managing the trust, thus making sure that your loved one receives everything you've set up for them. Choosing a responsible trustee will help put your mind at ease.
- It protects government benefits: For example, your loved one may qualify for Medicaid, subsidized housing, Supplemental Security Income (SSI) and/or vocational rehabilitation. If you leave your assets through a will, it could disqualify your loved one from receiving some or all of these government benefits. However, this doesn't hold true if you setup a special needs trust.
- Future protection: If your loved one is ever sued in the future, the funds in their special needs trust cannot be seized.
It's never easy to think about what will happen to your disabled loved one after your passing. By taking the right steps, such as setting up a special needs trust, you will feel better about the future.
If the time has come to create a special needs trust, learn more about your legal rights and the best steps to take.