Unfortunately, when it comes to special needs trusts, there are a lot of things that can go wrong. This is because these types of trusts have several moving parts and are so complex and nuanced. In addition, there are many different ways to set them up.
In this blog post, we will discuss five common mistakes people tend to make when setting up a special needs trust. If you are planning on establishing a trust for a loved one with disabilities, make sure to avoid these common mistakes! Read on to learn more.
1. Not Hiring a Skilled Financial Professional
One of the biggest mistakes people make when setting up a special needs trust is not hiring a skilled financial professional to help. The reason for this is that these professionals have the experience and knowledge necessary to ensure your trust is set up thoroughly and correctly. Without the help of an experienced financial professional, you may end up making costly mistakes that could jeopardize the success of your trust.
2. Failing to Fund the Trust Properly
Another common mistake people make when setting up a special needs trust is not funding it properly. You need to make sure that you fund your trust with enough money to cover your loved one’s needs. If you do not fund the trust properly, your loved one may not be able to get the care and support they require.
3. Not Naming a Successor Trustee
Another mistake people make when setting up a special needs trust is not naming a successor trustee. A successor trustee is someone who will take over the management of your trust if you are unable to do so. This is very important because it ensures that your loved one will still have someone to help manage their trust if something should happen to you.
4. Failing to Update the Trust on a Regular Basis
Another mistake people make is not updating their trust on a regular basis. You should be sure to update your special needs trust whenever there are substantial changes in your life or in your loved one’s life. For example, if you get married or divorced, you should update your trust to reflect as such. If your loved one’s needs change for any reason, you should update the trust with this information as well.
5. Not Following the Terms of the Trust
Finally, another mistake people make is not following the terms of their trust. It is important to carefully and thoroughly read over the terms of your special needs trust and do everything possible to make sure you understand them.
If you do not follow the terms of your trust for any reason, it could potentially be invalidated. This would mean that your loved one would no longer have a special needs trust and would be forced to rely on other resources to help meet their needs.
We Can Provide Assistance with Your Special Needs Trust
Avoiding these mistakes will help you ensure that your special needs trust is set up correctly and will benefit your loved one. If you have any questions about setting up a trust, or if you need help funding it, contact an experienced member of our team today.
We have helped many others in similar situations with their special needs trusts, and we will do everything we can to help you too. Don't delay—reach out to our team of skilled financial professionals right away for the answers to your questions.
Call Legacy Enhancement Trust today at (888) 988-5503 or fill out the online contact formto learn how we may assist you!