A special needs trust can provide benefits to families which is why they are an important estate planning tool to be familiar with and understand. Estate planners considering estate planning options should what a special needs trust is and the benefits of having one included as part of their estate plan.
How a special needs trust can be helpful
A special needs trust can be used to care for a disabled child or adult. Using one can prevent the disabled person from losing their public benefits and also provide additional funding to care for them. While a special needs trust can help the disabled beneficiary retain the eligibility for public assistance benefits, it can also be used to hold cash, real property and personal property for the beneficiary. The trust can also be the beneficiary of a life insurance policy which will also benefit the disabled beneficiary.
Trust property that can be included in a special needs trust can include cash, securities, real and personal property and life insurance proceeds. Parents, family members and friend of a disabled child or adult can include a special needs trust as part of their estate plan. Doing so allows the estate planner to rest easy that if the disabled beneficiary’s public benefits do not meet all of their needs, the special needs trust can ensure that they are cared for. A trustee will need to be designated to manage the trust for the benefit of the disabled beneficiary.
Because ensuring a disabled loved one is properly cared for is a high priority for some estate planners, they should understand how a special needs trust works. They should also understand how a special needs trust can help them ensure their disabled loved one is cared for.