When it comes to estate plans, you have many different factors to review and every individual and family is in a unique position. There are pros and cons to each strategy, and the smartest approach to estate planning depends on your unique circumstances. If you have a loved one who has special needs, a special needs trust could help them in the future and provide your family with peace of mind.
It is important to take a look at how special needs trusts work and review the advantages of these trusts.
Who can create special needs trusts?
According to the Tennessee State Government’s website, special needs trusts are set up solely for a disabled person’s benefit. The disabled person must be under the age of 65 and satisfy disability criteria under the Social Security Act. Disabled people can create a special needs trust themselves, and these trusts can also be set up by the parent, legal guardian or grandparent of a disabled individual, as well as courts.
What are the advantages of a special needs trust?
If you want to set up a trust for your loved one with special needs, it is vital to go over the perks of this strategy. With a special needs trust, the funds do not count as resources, which can help a disabled person maintain their eligibility for crucial government programs they depend on (like Medicaid and Supplemental Security Income.
If your disabled loved one counts on these programs, other estate planning options could interfere with their ability to receive benefits. Make sure you thoroughly go over the process of creating a special needs trust and do all you can to protect your loved one’s future.