If you care for a family member with a disability, you could probably use all the help you can get. As they (and you) get older, their needs can become more complex, and you’ll want to make sure they’re well taken care of regardless of your ability to provide for them. That’s why so many families are turning to special needs trusts to protect their loved ones. Here are a few benefits you can anticipate from finding the right special needs trust manager.
1. Setting Aside the Necessary Funds
Special needs trusts are specially created to ensure that your mentally or physically disabled loved one will always have the financial support he or she needs. This money can be earmarked to pay specifically for a nurse or for a group home, so you’ll know that the money is always being put where it belongs.
2. Appointing a Trustee
If your loved one is unable to manage their finances on their own, a special needs trust enables you to appoint a trustee who can do it for them. While it might be tempting to have a family member or older sibling as trustee, it’s not always the wisest decision. You might want to consult with a lawyer or aspecial needs trust management company to find the best trustee for your situation.
3. Managing Government Aid
Navigating the regulations and income requirements that come with receiving government aid can be a challenge. The last thing you want to do is provide a disabled family member with enough money so that they’re no longer eligible to receive the government aid they need to live comfortably. Special needs trusts can be designed in such a way so that the beneficiary can receive money that will improve their quality of life without putting their aid in jeopardy.
4. Protecting Assets
You might want to put aside money for a disabled family member, but your savings won’t be protected from either creditors or if you were to get a divorce. By putting that money in a special needs trust instead, it can’t be seized or lost, but is dedicated only to the beneficiary’s well being.
5. Preserving Wealth
Special needs trusts operate like other kinds of trusts. They’re a means a utilizing assets while limiting their use. They provide security for a special means child who outlives the parents, regardless of the behavior or inheritance of the other members of the family.
Consulting with experts in special needs trust management is imperative to having a trust that’s appropriate for you and your family.