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Is a special needs trust right for your estate plan?

On Behalf of | Mar 3, 2021 | Estate Planning |

If you have a loved one with special needs, then you’re probably worried about what their future looks like without you. This is a concern for a lot of Floridians who care for loved ones with special needs, but you there are proactive steps that can be taken to ensure that your loved one has the financial resources that he or she needs to be properly cared for after your passing. One of the best things you can do is create a special needs trust.

Why special needs trusts are beneficial

A special needs trust is an irrevocable trust, meaning that assets that are placed into it can’t be taken out. While that might sound a little too permanent for your liking, revocable trusts that are identified as special needs trusts have real advantages. Perhaps the biggest amongst them is the fact that the assets placed into these trusts don’t count as income when determining eligibility for government programs like Medicaid and Supplemental Security Income.

This means that the special needs trust that you set up for your loved one can help pay for a residence, a vehicle, personal effects, and even furnishings without impacting his or her ability to receive free or cheap healthcare. In other words, the special needs trust can provide your loved one with financial stability and comfort long after you’re gone.

Be holistic in your approach

Of course, a special needs trust should be just one aspect of your estate plan. If you want to ensure that your assets and your loved ones are as fully protected as possible when the time comes, then you need to take a holistic approach to your estate planning. This means knowing the tools at your disposal and how to effectively utilize them. For assistance with that, skilled legal professionals like those at our law firm stand ready to educate and assist.

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Jennifer