Massachusetts parents who have a child with special needs often dedicate their lives to providing the best care possible to him or her. Some of these parents may also be preoccupied with ensuring that their child will continue to receive the same level of care if and when they are not around to do it themselves. This is where a special needs trust can be crucial.
Medical expenses, special equipment and other items required for the care of a child can be expensive. Government benefits are helpful, but limited. Supplementing those benefits is nearly always needed, but if your child has too many assets, he or she may no longer qualify for benefits.
Putting those assets into trust makes them available, but not in your child’s name, which means that they are not counted when applying for benefits. You also have the chance to control how the assets of the trust are used, keep the assets out of reach of other family members and prevent the beneficiary from being taken advantage of by individuals who do not have your child’s best interests in mind. Choosing the person who will administer the trust is also crucial since he or she will have a certain measure of power over your child.
A special needs trust can be funded numerous ways. It also needs to be properly structured in order to comply with Massachusetts and federal laws. Otherwise, the trust could be invalid, which would make your child vulnerable. Further, a trust that is set up correctly will consider other issues such as tax implications in an attempt to ensure that your child receives the maximum benefit possible from the assets of the trust.