When special needs trusts make sense

When special needs trusts make sense

On Behalf of | Sep 17, 2021 | Estate Planning |

Estate planning in Washington, D.C., maybe more complicated for parents whose children have special needs. It’s important for them to discuss their options in setting up a trust, but knowing which trust accommodates disabilities is also necessary. One of the main reasons to consider trusts for special needs dependents is the irrevocable statuses of these trusts. The contained assets and payment schedules can’t be changed later on. Here are some other reasons why a special needs trust is a sound option in estate planning.

You can provide income for your dependent

When you fear that someone with special needs lacks the independence to live a full life, you can fund a trust for their assistance. For people with disabilities, a trust provides a consistent allotment of money based on the assets therein. Trusts, be they for special needs or not, are managed according to the explicit details of a written contract.

Your loved one isn’t exempt from public assistance

The money in a special needs trust doesn’t disqualify its beneficiary from receiving further public assistance. Your beneficiary can still work and live independently should they choose. Nothing is weighted against them due to the benefits they gain from the trust you set up. This specific clause of your estate plan lets your beneficiary keep their public qualifications within income-restricted programs.

The allotments are strictly remedial

The use of a trust you create for special needs is limited to the medical, health, and basic living needs of your beneficiary. Aside from how you word your documents, the purpose of a special needs trust is to give unique support to those with disabilities. You can, with the help of the law, have confidence in how the assets of your trust get used. You just need to decide whether a common trust or a special needs trust is right for your family.