If a child or another loved one has a disability, you may want to consider the benefits of creating a special needs trust. There are many reasons to learn more, including the fact that the use of a trust could help this person long after you are gone.
Generally speaking, many people with disabilities qualify for government assistance, such as Medicaid, Supplemental Security Income (SSI) and vocational rehabilitation.
While it's nice that they qualify for these benefits, this may not last forever if you make a mistake in regards to estate planning. Should you leave assets to this person through a will, it may disqualify them from receiving government assistance in the future.
Through the creation of a special needs trust, you never have to concern yourself with this. Since the trustee has control over the trust and funds, not your loved one, the government ignores these assets when determining eligibility.
There are other ways you can use a special needs trust, such as to set up an inheritance fund or to house proceeds from a settlement.
Understanding the reasons to create a special needs trust is a good start, but it's just that: a start. You should also understand how to carry out the process, as well as what you can and can't do in regard to the assets you move into the trust.
As you learn more about the creation of a special needs trust and the benefits it can bring, you may come to find that it's the best way to protect a loved one now and in the future.