Many families across California include a child with special needs. Some parents worry about who will care for that child in the event of their death and how that caregiver will cover the necessary costs for someone who may not be able to generate income. One way of accomplishing this is by establishing a special needs trust. Financial experts say that if one is set up correctly, the trustee can still access government benefits and parents will gain peace of mind that money will be available for care. Here are some facts about special needs trusts.
Most families decide to use a Third-Party Special Needs Trust or Family Trust. The grantor of the trust sets aside money that will cover necessary expenses. The trust cannot be used for food, shelter or medical bills if the grantor wants the beneficiary to still have access to government benefits. Some families create the trust with their assets while others designate their life insurance for that purpose.
Though people may think of a special needs trust for those with a cognitive or developmental disability, it may be a good idea for anyone with any kind of disability. It is also important for parents to consider who they want to appoint as a third-party trustee to ensure the money is allocated properly. People often choose a child’s sibling, but whoever it may be, it is important that it is someone the parents can trust to properly care for the beneficiary.
Establishing a trust of any kind can be a detailed process that may be best left to a professional. Those families here in California who are interested in how a special needs trust may help someone they love can reach out to an attorney for guidance. The most important thing is that their loved ones receive proper care for the duration of their lives.