Special Needs Planning

Many clients come to us assuming that they need a separate stand-alone Special Needs Trust for anyone in their family who is under a disability.

This is not usually the case. Unless you have assets that you wish to get out of your estate now, or you want the disabled family member’s fund to be established immediately for some reason, you can use a special needs trust in your own Asset Protection Trust or Will to protect your loved one after you pass on.

Use of the Special Needs Trust (called a Supplemental Needs Trust in your own Trust or Will) means that your family member under a disability will receive all of the government benefits to which they are entitled without interruption, but also get the benefit of any asset that you leave to them, without any risk of loss of that inheritance. You name a trustee to be in charge of their inheritance after your death. The trustee can only use the assets to benefit the disabled beneficiary. They can purchase a home for them, a car, a television, pay them. Because the beneficiary cannot go directly ir rent- use the money you have protected in the trust to enhance the disabled beneficiary’s lifestyle, just as you would have during your life. Because the disabled beneficiary cannot take money directly out of the trust themselves, it is protected from any creditors they may have, from anyone who may want to take advantage of them, and from any bad financial decisions that they might make.

Using this protective trust for your disabled family member will give you peace of mind knowing that they will be protected and cared for financially for the rest of their life after you are no longer around to protect them.