One of the most important reasons to create an estate plan is to ensure that loved ones receive assets and property in the future. Caring for family members is a primary reason to plan for the future, and there are different estate planning tools available to you that will allow you to do so effectively. One of these tools is a trust, a specific option that allows you to set aside and save assets for a specific use.
If you are the parent of a special needs child, or you care for someone who cannot care for himself or herself, a special needs trust is a prudent option for you. This type of trust can provide you with peace of mind knowing that your loved one has what is needed for the future. By setting up a special needs trust, you can guarantee that the beneficiary will have access to care and support even if you are no longer there to provide it yourself.
The benefits of this type of trust
Leaving assets to an individual is a common estate planning choice, but this may not be the ideal decision if it is for a special needs person. This individual may not be able to effectively manage large sums, or he or she may need assistance with making important decisions. Additionally, receiving a large amount of money could compromise eligibility for government assistance. Benefits of a special needs trust include:
- You can choose the trustee, which is the person who will oversee the administration of the trust and distribution of assets from the trust.
- The assets in a special needs trust do not affect a beneficiary’s eligibility for other types of support from the government.
- A special needs trust can ensure your loved one has funds for things not covered by government benefits, such as clothing, education and more.
If you care for a special needs child or you want to ensure that someone you love has care and support, this specific type of trust may be the ideal option for you. It may be helpful to speak with a California professional regarding the specific options available to you and how you can create a strategy that allows you to feel confident regarding your interests and those of your loved ones.