Things to Consider When Setting Up a Special Needs Trust |
Posted: July 7, 2019 |
If you're planning for the future of your child with a disability, chances are you're looking into different companies that offer special needs trusts. Right now, your loved one likely receives aid through Medicaid and their Security Supplemental Income (SSI) benefits in addition to your assistance. To ensure they remain qualified for those benefits, their cash assets shouldn't exceed $2,000. A special needs trust is a way that you or other grantors can direct any inheritance or insurance to benefit your child. This also ensures that their social securities are protected. With a trust, the beneficiary's finances are spent wisely. Before setting up this legal protection, please consider the following: How Much You'll Put in the TrustWhile there isn't a minimum amount required for funding a trust, it helps to think about the nature of your child's needs and the level of care they require. A special needs trust company can give you advice and guidance to help you make the best choice for you and your child. The Type of Trust That's Best for Your ChildYou have two options to fund your child's special needs trust (SNT) through. Both of them will allow you to set aside assets for any expenses that aren't covered by public benefits such as a vacation, hobby, or education. These are:
Appointing a TrusteeA trustee is in charge of managing and investing the trust fund for the long-term benefit of the grantee. They're responsible for keeping up with the rules of Medicaid and SSI so that the expenses don't affect the individual's eligibility for these privileges. They prepare the necessary records needed for maintaining the public benefits as well. Given the crucial role and tasks of a trustee, it's best to seek out the advice of a special needs trust attorney for help selecting the best person for the job. It can either be a family member or a professional financial planner, whatever you feel most comfortable with. Secure the financial future of your child with a disability by keeping in mind the considerations above. Set up an SNT and work with a reliable special needs trust company that can help you.
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