If you are a parent to a special needs child, you have concerns for your child that many other parents may not understand. For instance, when it is time for you to pass on, how will your child manage any assets you leave behind for him or her? How will an inheritance of any sort affect his or her disability benefits? These are both great questions that some parents in Texas need answered.
Your estate plan can provide for your special needs child after you pass away. Creating a special needs trust is an excellent place to start.
What will a special needs trust accomplish?
Some children, no matter how old they get, simply are not in the position to manage their finances let alone an estate that they inherit. By placing assets in a trust, your child will not bear the burden of having to manage it all. It will be the trustee’s job to manage the trust and to make sure your child receives what he or she needs when it’s needed.
Income limits apply to the receipt of most government benefits. If your child is receiving government assistance, he or she may lose that assistance by suddenly coming into some money or property, which would raise his or her net worth to a disqualifying level. A special needs trust can help fix this problem. By putting assets in the trust, they will not technically belong to your child, but instead will belong to the trust. So these assets, if distributed appropriately, will not affect his or benefits.
Setting up a special needs trust
Like all other types of trusts, there are specific things that require consideration when setting up a special needs trust. For starters, state-specific guidelines need to be reviewed and followed. Along with that, the wording of the trust must be just so or it could end up hurting rather than helping your child.
Have any more questions or want to get started?
Estate planning can seem like a difficult chore, especially if you have complex assets and you have a special needs child to consider. If you are not sure what protections you and your child require or where to even get started, an experienced attorney can help you set up just what you need.