As the parent of a child with special needs, it is important to make sure that your child has the resources to meet their long-term needs. A special needs trust provides a source of funds for your child to meet financial obligations, making it an important part of your estate plan.
There are many misconceptions about these trusts, so you should understand the facts.
Special needs trusts protect assistance eligibility
Even if your child currently needs no public assistance, there may come a time when they do. Plan ahead for this potential by protecting them from resource disqualification. A special needs trust is its own legal fund, so assistance applications exclude those assets from resource calculations.
Special needs trusts work for many situations
A common misconception about special needs trust accounts is that they only benefit those with developmental disabilities. The fact is that a special needs trust can help in many situations, including chronic illness, physical disabilities and mental health challenges.
Special needs trusts are an addition to your estate plan
Sometimes parents assume that a comprehensive estate plan and detailed will provide enough protection for their special needs child. This is not always true, especially if someone contests that will. A special needs trust added to your estate plan ensures that your child has the resources you intended for them.
When it comes to protecting your child’s long-term financial stability, a special needs trust may be the sense of security that you need. You can eliminate any worries of financial resource disqualification for services while providing for their financial needs.
