Special Needs Trust Are Important
If you have a child with special needs, it is important to establish care for them in case something happens to you. In order to make sure they are taken care of financially for life after you pass, there are a couple of important things to consider.
Government benefits may be available to help care for special needs children, but only if children have less than $2,000 in eligible assets. As a result, well-intentioned gifts or inheritances from parents in excess of $2,000, when not properly planned, may leave children ineligible for benefits.
The government must determine that eligible children have limited finances or limited financial help in order to qualify for benefits. Because poor planning can directly impact eligibility, parents should keep the following in mind.
Who Are Your Named Beneficiaries?
Naming a special needs child as a beneficiary may directly impact their eligibility for government benefits.
Some parents may try to address this issue by leaving out their special needs child with an understanding that other siblings or family members are to help them. This offers little protection to their special needs child as that agreement may fray with time, age, divorce, or any number of factors, leaving vulnerable family members unprotected.
Have You Considered a Special Needs Trust?
Special needs trusts provide protection for their special needs beneficiaries while preserving eligibility for government assistance. By pre-planning in advance for a special needs child, they can receive an inheritance through a structured trust, which can be used to supplement their needs and benefits.
At Estrada-Legal, we focus on planning for you, your family, and your lasting values and legacy. We can help you address uncertainty regarding the care of your special needs family and create a special needs trust for their protection and benefit.