When you are creating an estate plan, you are doing so with the intent of planning what you want to happen with your assets and property after you pass. You can also make choices that will allow you to control your health care in the event that you are incapacitated. You may also have the desire to care for your loved ones through the terms of your estate plan, specifically those who may not be able to care for themselves. Depending on the needs of the individual, a special needs trust may be appropriate.
A special needs trust is an estate planning tool that allows you to set aside and protect assets for a specific use, which may include providing for the financial needs of an individual who cannot care for himself or herself. If you care for a Colorado family member or have a special needs child, this may be a prudent addition to your existing long-term legal and financial strategy. There are many benefits to establishing this type of trust, and it can provide benefits for every member of the family.
How does it work?
A special needs trust allows you to designate funds that will directly benefit the care of someone who is unable to earn an income to meet his or her own needs. A trust is a practical way to provide this support as it allows you to have control over the use of those funds, even after you pass. Some of the benefits of a special needs trust include:
- Benefits held in a special needs trust do not impact the beneficiary’s eligibility for government benefits, such as Medicare or Medicaid.
- You can name a trusted individual to oversee the management of the trust and distribution of trust assets.
- You can use the funds of a trust for needs not covered by other benefits, including clothing, education, supplemental care, housing and more.
With a special needs trust, you can be certain that your loved one has the care he or she needs, even after you are gone. If you are unsure if this could be a beneficial addition to your estate plan, or you would like to learn more about how you can leverage the benefits of a trust to protect your loved one, you may find it helpful to seek experienced counsel regarding your options.
