Competent estate planning is one of the best ways to ensure that you can provide for your loved one’s after your death. This may mean setting up something basic like a will and revocable trust, or it may require more extensive documentation to ensure that all assets, identified heirs and beneficiaries, and situations are accounted for. This can be a challenging task to address, which is why it is advisable that you seek out legal assistance to develop your plan.
One matter an attorney can help address is the future care of a child with special needs. Arizonans who have special needs children often worry about how those children will get by without their financial and emotional support. It’s a difficult issue to address, but through the utilization of a special needs trust you better maximize the resources that your children will have at their disposal.
Generally speaking, assets placed into a special needs trust do not count toward requirements that must be met for an individual to obtain public benefits. Therefore, if a child receives Social Security disability benefits, then certain income and asset limitations are imposed to limit funds to those who are truly in need. By utilizing a special needs trust, though, you can give your special needs child additional assets without it effecting their eligibility for these programs.
Another benefit of the special needs trust is that it can protect assets from questionable uses. Not all heirs and beneficiaries know how to spend their money wisely. This type of trust can contain certain terms and restrictions on asset distribution that can secure trust funds for a greater period of time which, in turn, provides the child with more long-term stability.
Funding one of these trusts can be worrisome when you calculate the costs associated with a special needs child’s future care. However, an attorney who is experienced in creating these types of trusts can help give a realistic idea of how far the trust will go when funded at a certain level and provide additional estate planning options that can help meet your needs as fully as possible.
