Most Massachusetts parents use estate planning to provide for their children after they pass away. If you are a couple with a special needs child, providing for him or her may take on a greater significance. Using a special needs trust to achieve that goal has numerous benefits for your child.
Simply passing assets directly to a special needs child after death can cause a loss of government benefits that may be essential to the care of your child. Putting assets into a trust will not add them to your child’s estate, but will provide your child with the benefit of them. You can also control how the assets are managed and distributed by the trustee for the benefit of your child without jeopardizing access to government benefits.
How the trust is structured is crucial in order to minimize or eliminate typical tax consequences. Its structure may also prevent other family members from taking advantage of your special needs child after you are no longer there to protect him or her. Enlisting the advice and assistance of an estate-planning attorney is essential to ensure that the trust meets your goals. A myriad of expenses can be covered through the assets in a special needs trust, and they can also be funded in numerous ways.
There are numerous challenges in caring for a special needs child, and you, like other Massachusetts parents, happily tackle those challenges with love. Providing for your child after death should be no different. Creating a special needs trust is one way to help ensure that the care you have given your child continues regardless of whether you are there or not.