When a loved one has special needs, it can be extremely important to be able to provide income for them without adversely impacting their benefits. This is where a special needs trust can prove invaluable.
Unfortunately, many people overlook special needs trust because they don’t fully understand how they can be of service. It’s important that you understand that there are many benefits to a special needs trust. Here are 5 benefits that could be very useful for your loved one.
1. Ensuring that your loved one is supported not only while you are alive but also when you’re gone.
As with any trust, a special needs trust can be greatly beneficial by providing your loved one with support both during your life and after your death. One of the biggest concerns individuals have regarding their loved one with special needs is how they will be cared for and continue to live comfortably after your death. A special needs trust can help with this.
2. You can name a trustee who will help to look over the assets of the trust.
If you can’t be there to watch over relevant assets, naming a trustee who can do so in your place is the next best thing. Special needs trusts allow you to name someone who will be responsible for overseeing the trust’s assets. This individual will also help to administer spending decisions.
With a special needs trust, you can name someone who will be there to watch over the assets in the trust. If something were to happen to you, the trustee would be there to fulfill their duties of administering spending decisions.
3. You can provide assets and protect aid.
A major benefit to establishing a special needs trust is the ability to provide your loved one with assets without negatively impacting their receipt of government aid. Funds that are added into a special needs trust would not be income and therefore would allow your loved one to continue to receive government assistance, living situations, medical care benefits, and the like.
4. You can continue to preserve family wealth or property.
Special needs trusts can allow you to protect your family assets and to determine which assets you wish for your loved one with special needs to receive. This can be extremely effective in preserving wealth and other assets in the future.
5. In the event of a divorce or legal matter you can protect assets.
Should your loved one with special needs go through a divorce or be sued, the trust will greatly protect their assets. This is because a special needs trust is not part of a divorce as community property or an inheritance. It does not count as an asset in any way and therefore can be used as a means of protecting important assets.
Surovell Isaacs & Levy PLC Can Help Those in VA Who Wish to Establish a Special Needs Trust
If you have a loved one with special needs, you may find yourself concerned with their wellbeing now and after your death. By establishing a special needs trust it can help to provide you with peace of mind that your loved one will be protected and cared for – even if you aren’t around to do so yourself. Additionally, it can help to protect important family wealth and other assets but will not negatively impact your loved one’s ability to receive government aid. At Surovell Isaacs & Levy PLC, we have great knowledge of trusts, including special needs trusts, and would love to help you and your family breathe a bit easier. To learn more or to schedule a consultation, contact us today!
Posted in: Estate/Trust planning