Special Needs Trust Lawyer
If you have a child with special needs, you may be concerned about his or her future. You may worry about what will happen to your child after you are gone. It is perfectly normal to have these concerns. If you establish a special needs trust for your child, you can have peace of mind.
As an experienced special needs trust lawyer from W.B. Moore Law explains, there are several ways families can benefit from setting up a special needs trust.
Make Sure Funds Are Used as Intended
This is one of the most important reasons to set up a special needs trust. If you have a special needs trust, distribution of assets is directed by the trust documents. On the other hand, if you were to leave your assets to another child and ask him or her to take care of your child with special needs, things might not work out the way you had planned. The able-bodied child might not honor your wishes or die prematurely and leave the funds to his or her kids.
Keep Government Benefits
Many adults with disabilities obtain public benefits to help pay for their expenses, such as rent and utilities. These government programs have limits on income and assets, so providing funds to your child directly could cut off his or her benefits. That’s another good reason to set up a special needs trust. The government does no’t count assets in a special needs trust as income for determining eligibility for benefits.
Fund As You Want
Another great aspect about special needs trusts is that you can fund them with a variety of sources, whether that is cash, investments or retirement plans. Some people also choose to fund a special needs trust with a life insurance policy because it is the most affordable option. If you fund the trust with life insurance, you will not deplete your other assets.
Maximize Personal Injury Settlement
If your child with a disability wins a personal injury settlement, putting the payout in the special needs trust is a good idea. Your child will still be able to receive government benefits and may use the funds from the settlement for various expenses.
Let Other People Contribute
By creating a special needs trust, you will also give other people, like grandparents, aunts and uncles, to help your child financially. They can make yearly gifts to the trust up to certain amounts without triggering the gift tax. This can certainly be a big help to your child.
Determine Appropriate Distributions
With a special needs trust, you can also determine when and how you want your assets distributed to your child. This will come in handy after you are gone. The trustee will use your guidelines to make the appropriate distributions.
If you need assistance setting up a special needs trust for your child, you should schedule a consultation with an attorney as soon as possible. An attorney can guide you through the process and make sure the trust states your wishes.