Setting up a special needs trust can seem like a daunting task, but it doesn't have to be. In fact, there is no waiting period, and the process can be completed soon after meeting with a financial professional. This article will discuss the basics of setting up a special needs trust and provide some tips on how to get started.
Getting Started with a Special Needs Trust
The first step in setting up a special needs trust is to meet with a financial professional. A qualified attorney or financial professional can help you assess your needs and determine the best type of trust for your individual situation. The financial professional will also be able to advise you on any tax implications that may be associated with the trust and provide guidance on how to properly manage it.
Once you have chosen the type of trust that works best for you, the next step is to decide who will manage the assets and make decisions about distributions from the trust. Typically, this person is referred to as the trustee, and their role is very important as they are responsible for ensuring all funds in the trust are used in accordance with its purpose. Depending on the size and complexity of your trust, you may decide to appoint a professional trustee or manage it yourself.
After setting up the trust, you will need to fund it. This usually involves transferring assets into the trust from either an existing account or through contributions from family members or friends. It is important to ensure that all funds are properly managed and tracked for tax purposes.
Finally, once the special needs trust has been set up and funded, you can begin making distributions from it to cover expenses related to the beneficiary’s care. Distributions should only be made in accordance with the terms of the trust and always with an eye toward maximizing benefits while minimizing taxes owed by the beneficiary.
We’re Here to Help
If you need help setting up a special needs trust, we are here for you. We have helped many others with their trusts, and we are happy to do the same for you.
Call Legacy Enhancement Trust today at (888) 988-5503 or fill out the online contact form to learn how we may assist you!