As Rubin Law of Chicago points out, “Public benefits such as Social Security, Medicaid, and more may be crucial sources of financial support for your child throughout life, and the loss of those benefits could be catastrophic. A specialneeds trust has the advantage of preserving public benefits eligibility while enabling third parties to contribute funds to support a special needs child’s other needs.”
At our Indiana estate planning practice, we consider special needs trusts a highly versatile and useful tool for clients whose families include a child with special needs (who has an intellectual or developmental disability).
- While the trust is usually established by parents, grandparents, or legal guardians, the assets are managed by a trustee.
- The special needs trust framework can be created for the benefit of the special needs family member, but there is no requirement to fund it immediately. While assets may be transferred into the trust right away, funding may not occur until later, or even be deferred until the death of the creator(s).
- Different people can contribute assets to the one special needs trust without creating the need for separate documents.
- The funds in a special needs trust are not meant to pay for food or housing costs, the trust can help pay for medical expenses, rehabilitation, companions, education, and even travel and entertainment.
Parents naturally want their children to be taken care of after they die. But children with disabilities have increased financial and care needs, so ensuring their long-term welfare can be tricky. In this season of giving, one gift that should be considered is a special needs trust, the kind of gift that can continue to give years into the future..
– by Rebecca W. Geyer
