Setting up a special needs trust is an important step in securing the financial future of your child with disabilities. These trusts not only provide for their long-term care but also ensure that they can continue to receive government benefits.
In this blog post, we will provide practical advice and step-by-step guidance on setting up a special needs trust for your child, covering key considerations in the planning process.
Choosing the Right Trustee:
Selecting the right trustee is crucial as they will be responsible for managing the trust assets and making decisions in the best interest of your child. Consider someone who understands the unique needs of your child and has experience in financial management or legal matters. It could be a family member, a close friend, or a professional trustee.
Funding Strategies:
Determining how to fund the special needs trust is an essential aspect of the planning process. Explore various funding options such as personal savings, life insurance policies, or inheritances. Consulting with a financial advisor or attorney specializing in special needs planning can help you identify the most suitable funding strategies based on your circumstances.
Aligning with Government Benefit Programs:
To ensure that your child continues to receive government benefits like Medicaid or Supplemental Security Income (SSI), it's crucial to structure the special needs trust in a way that complies with program regulations. Seek guidance from an experienced attorney who can help draft the trust document with the necessary provisions to prevent disqualification for these vital benefits.
Planning for Future Needs:
Anticipating your child's future needs is an important consideration when setting up a special needs trust. Consider potential medical expenses, therapy costs, educational support, and quality-of-life enhancements. Work closely with professionals to estimate the financial requirements and establish funding mechanisms accordingly.
Regular Reviews and Updates:
Once the special needs trust is established, it's important to review and update the trust regularly. Changes in your child's needs, family circumstances, or government program regulations may necessitate amendments to the trust document. Stay proactive and work with your attorney to ensure the trust remains current and relevant.
We’re Here to Help
Setting up a special needs trust for your child with disabilities requires careful planning and consideration of various factors. By choosing the right trustee, implementing effective funding strategies, and ensuring compliance with government benefit programs, you can provide for your child's long-term financial security. Remember to seek advice from a professional specializing in special needs planning to navigate the complexities of creating a robust and comprehensive special needs trust.
Call Legacy Enhancement Trust today at (888) 988-5503 or fill out the online contact form to learn how we may assist you!