Planning for the future is complex, especially when it comes to deciding what happens to your property and assets after you pass away. One of the main things you may want to do is provide for your loved ones by bequeathing your wealth and assets to them. If you are the parent of a special needs child, one of your primary goals with your estate plan is likely to provide for this child and protect his or her interests well into the future. There are specific estate planning tools that will allow you to accomplish this goal.
Through a special needs trust, you can set aside and protect assets for the well-being and provision of someone who cannot care for himself or herself. There are many benefits to taking advantage of this specific estate planning tool, including the peace of mind that comes from knowing your child’s needs are secure. With thoughtful planning, you can feel confident that you have met your loved one’s housing and other basic needs long after you are gone.
What can you accomplish with a special needs trust?
Through a special needs trust, you can care for someone who has physical, medical or mental needs that keep him or her from holding a job and earning an income. One of the primary benefits to establishing a trust for this purpose is that payments received from the trust will not affect one’s eligibility for public benefits. Consider the following facts about special needs trusts:
- Your loved one will retain his or her eligibility for public assistance, such as Medicaid.
- Your provision of financial support for your child will not affect his or her ability to secure disability benefits.
- The money held in the trust is for additional needs your child may have not covered by other benefits.
- Payments from special needs trusts can go for needs related to medical expenses, transportation needs, payments for caretakers and more.
When creating a special needs trust, you will appoint someone to oversee the management and distribution of these assets. This individual has the responsibility of ensuring that the use of trust assets is appropriate, and not in a way that could compromise the beneficiary’s ability to receive public assistance. If you are the parent of a special needs child in Colorado, it may be in your interests to consider the benefits of establishing this type of trust.
