In some situations, wills are sufficient for meeting people’s estate planning needs in the state of Texas. However, in other situations, trusts can especially come in handy. One such situation is if a family has a special needs child.
Those who wish to leave inheritances or gifts to loved ones with mental or physical disabilities would be wise to plan carefully. Many people with special needs get government benefits, and gifts or inheritances place major financial restrictions on their eligibility. If gifts and inheritances cause people to surpass their limits, their benefits will unfortunately be interrupted.
Rather than leaving an inheritance directly to a person with a physical or mental disability, one could instead leave this inheritance to what is called a special needs trust. The assets held in a special needs trust are not viewed as belonging to the person with special needs, so it is not calculated when the person’s financial eligibility for government benefits is being determined. These types of trusts are completely separate entities.
The benefit of a special needs trust in the state of Texas is that it can be used to ensure that the beneficiary has the care or items necessary beyond what his or her government benefits can provide. For instance, if particular medical equipment or treatments are not covered by the person’s benefits, they could be covered by the trust. Proper legal guidance can help people to effectively set up special needs trusts and other types of trusts that meet their unique needs.
Source: fdlreporter.com, “Easing the burden: Estate planning, beneficiaries with special needs“, Isabell Mueller, Nov. 24, 2016