5 Reasons to Get a Special Needs Trust
If you are a parent of a special needs adult child, it’s important to make sure your child will be taken care of when you’re incapable of caring for them. You can have a trust created that outlines steps for their care once you die or are incapacitated. There are five reasons you should get a trust.
Special Needs Trust and Assets
A special needs trust ensures that you can leave assets for your adult disabled child. This is a legal means of securing support for your beneficiary just as any other type of trust. Whether your child is living with you or in a group home, when you leave the trust, it can provide assets to them to keep them comfortable and cared for in the long term.
Assigning a Trustee
When you have a trust for your special needs adult child, you can appoint a trustee to manage the decisions regarding your assets and how they are distributed. You get to choose how that person does this as your child is unable to independently manage finances. The trustee must abide by your wishes. However, it’s wise to appoint someone other than a sibling or other family member due to potential jealousy and competition. You should also name a successor in case the person you name is unable to do the job.
Maintaining Government Aid
A special needs trust is a better option for an adult disabled child than naming them as a beneficiary in your will. Unfortunately, if your child needs assistance like government benefits, naming them in your will can prevent them from getting that aid. Specifically, adult children who are left more than $2,000 in assets can be turned away from receiving much-needed government assistance.
Protecting Assets from Creditors
Another benefit of a special needs trust is that it can protect your child if you are in debt and creditors try to collect on that debt. If you are no longer around but never satisfied your debt, creditors can turn toward your child for it. The special needs trust can protect your assets and your child. The same can be said for a divorce as the trust protects your child in ensuring they still receive the full support you want and have outlined. A probate attorney in Las Vegas can help you prepare the document.
Preserving Family Wealth
Finally, a special needs trust is helpful for preserving family wealth. If you have concerns about providing for your adult disabled child and believe they may outlive you, having a trust is essential. However, if you have other children as well, you can also have a clause in the trust stating that if your special needs child dies, the assets can be distributed to your other children. This ensures the finances stay within your family.
A special needs trust is a wonderful way to continue to care for your child when you’re no longer around.