3 Reasons to Consider a Special Needs Trust

Special Needs Trust, which is also sometimes referred to as Supplemental Needs Trust, has gained substantial popularity among the masses.

What is this fund designed for?

Well, a Special Needs Trust intends to protect a person’s assets with special needs while supplementing any benefits they can receive from the government.

Many people are aware of special needs trust but are unsure whether they should set up one for their family. Are they eligible? Does the trust apply to their specific conditions?

Here are some of the reasons to consider establishing a special needs trust.

  1. Earmarking Assets for Support

Trusts are generally structured with the intent to pave a legal way to title and hold assets to support beneficiaries.

Similar is the case with special needs trust, except that they apply exclusively to people with mental or physical disabilities. They can be utilized for various needs, but the trust’s initial language specifies where the funds should be utilized.

2. Putting a Trustee in Place

Another crucial advantage of the trust is appointing a trustee to make major decisions related to the person’s assets. If your beneficiary cannot manage the assets provided any sort of reason, the trustee can perform a significant role in watching over your assets.

You should also rest assured that the distribution of assets would be according to the trust creator’s initial intentions.

3. Government Aid

Naming a disabled family member as a beneficiary can actually cause more harm than good. Doing so can disrupt the support the disabled person is getting from the government. Especially if the assets value more than 2000 dollars, the person would simply lose the government’s assistance programs.

Here is how you can solve the problem. Direct the intended inheritance to a Special Needs Trust. It is that simple.

If you need any further information related to the Special Needs Trust or are looking for an experienced attorney to help you out, contact Keystone Asset Protection and Estate Planning right away.