You may want to ensure that your loved one with special needs is financially taken care of in the unfortunate event that you pass on. Though, you may be unsure how to go about this without impacting the government benefits they may be receiving. Continue reading to learn how a special needs trust can support your loved one and how an experienced Putnam County trusts attorney at the Law Offices of Andres D. Gil, PLLC can help you set one up.
What special needs trust will support my loved one?
Mainly, there are three types of trust for loved ones with special needs. They are as follows:
- A third-party special needs trust: this may be created by you for your beneficiary, whether it be during your lifetime or upon your passing. They may be funded by your life insurance and accept gifts from grandparents, siblings, or other relatives.
- A self-funded special needs trust: this may be self-funded with the assets of your beneficiary. They may be funded with a settlement from a personal injury action, an inheritance, child support payments, or otherwise.
- A pooled special needs trust: this may be created by and managed by a nonprofit organization, all while being funded with the assets owned by your beneficiary. Such assets are pooled together for investment purposes.
How else can I support my loved one with special needs?
Social Security insurance, Medicaid, and other government benefits may assist your loved one with special needs in paying for medical care, dental care, education, transportation services, and other necessary assistance. As you may likely infer yourself, it is pivotal that your loved one maintains this support.
Oftentimes, individuals will disinherit their loved one with special needs in an attempt to preserve their government benefits. But it is a complete mistake to do so. Instead, it is recommended that you opt for any one of the aforementioned special needs trusts. Other tips that you should be mindful of are as follows:
- Carefully consider giving your loved one a majority of your assets.
- Carefully consider the expenses and taxes associated with your loved one’s inheritance.
- Carefully consider the trustee of your loved one’s trust.
- Carefully consider establishing a letter of intent for your loved one’s trust.
- Carefully consider the titling of your loved one’s trust.
- Carefully consider using life insurance to fund your loved one’s trust.
- Carefully consider coordinating with other relatives’ estate plans that include your loved one.
- Carefully consider that your loved one may need help creating an estate plan of their own.
All in all, you should not go through your estate planning process alone, but rather acquire support from a skilled Putnam County estate planning attorney. We look forward to helping you.