What Are the Benefits of a Special Needs Trust?
There are multiple types of trusts and other estate planning tools that can be used to provide for the needs of family members or ensure that a person and their family will have sufficient financial resources at all times. Special needs trusts are one type of important legal tool that can provide financial support and security for family members or other loved ones with disabilities. These trusts are designed to protect a person’s eligibility for government benefits while also providing supplemental funds for their care and well-being.
If you have a loved one with special needs, it is crucial to understand the benefits of establishing a special needs trust. An experienced attorney can help you understand some of the key advantages of creating a special needs trust and how it can positively impact your loved one’s life.
Preservation of Public Benefits
One significant benefit of a special needs trust is that it allows your loved one to maintain eligibility for government benefits such as Supplemental Security Income (SSI) or Medicaid. These programs often have strict income and asset limits, which means that direct inheritances or monetary gifts could cause them to lose these vital forms of financial support.
Placing assets in a properly drafted special needs trust can ensure that those resources will not be considered when determining eligibility for public assistance programs. This will allow your loved one to receive essential benefits without interruption.
In addition to preserving public benefits, a special needs trust enables you to provide extra financial support to enhance your loved one’s quality of life. The trustee can use the assets from the trust for various purposes like education expenses, travel arrangements, recreational activities, therapy sessions, assistive technology devices, home modifications, or other allowed expenses that are not covered by public assistance programs.
Funds Management and Protection
The appointment of a trusted individual or professional fiduciary as a trustee helps ensure proper management and protection of the assets held within a special needs trust. This can include investing the assets wisely, paying bills and expenses on behalf of your loved one, and safeguarding assets from potential creditors or financial exploitation.
Peace of Mind
Perhaps one of the most significant benefits is the peace of mind that comes with establishing a special needs trust. Knowing that your loved one will have ongoing financial support and access to necessary resources, both during your life and long after you are gone, can provide comfort for both you and them.
Contact a DuPage County Special Needs Trust Lawyer
Estate planning in situations where one or more family members have special needs requires careful consideration and knowledge of the available options and the legal issues that will need to be addressed. If you need assistance creating a special needs trust or any other type of estate planning document, the Gierach Law Firm is here to help. We will work with you to make sure your family will be prepared to address challenges that may affect you. Contact our experienced Naperville special needs estate planning attorney at 630-756-1160 to schedule a consultation.
Please note: These blogs have been created over a period of time and laws and information can change. For the most current information on a topic you are interested in please seek proper legal counsel.