It’s important to know how much care for a special-needs child truly costs. Parents are flexible when they’re alive and working to care for their children. These parents need something in place so a disabled child still receives care after the parent dies or is unable to provide for the child. A special needs trust is how Indiana residents legally prepare for the future care of loved ones.
Qualification for assistance
A special needs trust is specified for special needs due to the tax status that those with disabilities must register for. Not every child with special needs will qualify to receive public assistance though they might technically need it. Children who inherit substantial assets may get taxed based on wealth and not their disabilities. A special needs trust, instead, ensures that the beneficiaries you assign don’t get bracketed as disqualifying for public assistance.
Choice of a trustee
A special needs trust allows you to choose a financial professional or agency to preside over the money your child inherits. Though this money belongs to your heir, a trust can be written up to limit withdrawals to only what’s granted by a named trustee. Every trust names a trustee as a specific entity responsible for working out the directives of the trust’s creator. They often can:
- Speak directly with beneficiaries
- Decide if someone receives funding
- Act in the financial interest of the trust and its beneficiaries
- Offer investment advice and even withdrawal strategies
Funding your special needs trusts in Indiana
A special needs trust is also a suitable hedge against taxation. Keep in mind that even those with disabilities have to receive a tax status for their conditions. Their tax liability, just like you, is first based on what they own. Fund your trust with their wealth.