When a family member has a disability, it can be difficult for them to live independently. They may need help with everyday tasks, and they may not be able to work. This can put a strain on the family, both emotionally and financially. That’s where a special needs trust comes in.
What is a special needs trust?
A special needs trust is a trust that is set up specifically for the benefit of a disabled person. The trustee of the trust manages the assets and disburses them according to the terms of the trust. For instance, the trustee may pay for the disabled person’s medical bills or for their housing and food.
Who can set up a special needs trust?
A special needs trust can be set up by anyone – a parent, grandparent, family member or even a friend. It is important to choose someone who you trust to manage the assets and make decisions in the best interests of the disabled person. You may also want to consider choosing someone who is familiar with the disabled person’s needs and how to best meet them.
What are the benefits of a special needs trust?
Besides providing for the disabled person’s needs, a special needs trust can also protect their government benefits. If the disabled person were to receive an inheritance or other financial windfall, it could put their government benefits at risk. By putting the money into a trust, they can still use it to meet their needs without losing their benefits. Additionally, a special needs trust can help to ensure that the disabled person is taken care of after the death of their parents or other family members.
Whether you are setting up a trust for a disabled family member or you are the beneficiary of one, it is important to understand how they work. From there, you can decide if a special needs trust is the right solution for your family.