How beneficial is a special needs trust?

How beneficial is a special needs trust?

On Behalf of | Aug 23, 2021 | Estate Planning |

A special needs trust allows anyone to leave behind money and property to a person with special needs who is living in Washington DC or anywhere in the country. This arrangement also increases the recipient’s eligibility for government benefits. There are several, basic facts to understand about this type of estate planning.

What is a special needs trust?

A special needs trust is the allocation of property to one or more beneficiaries with a mental or physical disability. The beneficiary is able to receive a trust while receiving government benefits. The assets are held legally for a beneficiary who lacks the ability to manage his or her financial affairs. Even so, the legal process must be planned and executed carefully with the help of professionals.

For estate planning, it’s necessary to appoint the right trustee to manage the trust, whether it is a family member, friend, lawyer or other professional. This selection process is particularly important when handling the estate of a severely disabled individual. This agreement is often made with the assistance of an estate planner and a team of legal professionals.

Advantages

There are several advantages to having a special needs trust in the U.S. and the UK. This trust helps a disabled beneficiary to qualify for healthcare insurance under a Medicaid program and receive Supplemental Security Income (SSI) payments.

Parents and guardians need the peace of mind that their disabled child or adult will be cared for indefinitely. This comes in the form of a special needs trust, an allocation of funds and property that is reserved for the disabled beneficiary. It is a legal process that is highly recommended to ensure that a person’s assets are saved and spent wisely.