Special Needs Trust – Learn How It Will Help Your Disabled Family Member

Special Needs Trust

If you are the parent or relative of a person who has special needs physically or mentally and want to provide for them financially you can set up a special needs trust to help them for any needs they may have. There are several reasons why a trust such as this is a good idea in lieu of setting up monies that go directly to them. All of the reasons benefit and are in the best interest of the disabled person.

Should the disable person collect government benefits a direct payment would need to be stated to the agencies that provide support. Because of this reporting the disabled person may lose their social security and medical benefits that help support them financially and pay for their medical bills.

If an estate is large enough this may not be a concern. But if there is any chance that the financial support may run out during the lifetime of the person who is disabled it will cause them great difficulty to regain social support that they once had.

Many times a person that is disabled will not be able to effectively manage their finances and need assistance. With the help of a trust the trustee can help manage the funds that are deposited into the trust. It can be a safeguard for the disabled loved one to ensure that funds are being managed responsibly and practically throughout their lifetime.

The trust also ensures that after your death the trust and inheritance will go on and remain in place to care for the disabled person without stopping. It is money that has already been given to the trust and will not be affected by probate. Note that a trust will become irrevocable after your death and you should ensure that the disabled person will remain in the same disability throughout their lifetime. If there is a chance of recovery there may be a better trust to be set up for them instead of this type.

The trust will also be set up to be under the ownership of the trustee who manages the accounts and disperses the payments. For this reason the monies in it will not need to be reported to agencies as income for the disabled person. For this reason it is not going to affect the current support they receive. This can be a private trust that is run by a family member or a court appointed trustee. In the event that the court needs to intervene for the best interest of the disabled person the court will do so accordingly.

It can however help with the incidentals that a beneficiary has. Payments can be made for the living expenses, repairs or any other needs they should be have. They however cannot be given a cash payment from the trust as this would have to be declared as income. It can help make life easier yet not affect the current situation of the beneficiary.

Special needs trust is also know as structured settlement. They are a viable option to maintain an inheritance yet not negate their current support through disability. It is vital to choose a dependable and reliable executor of the trust who will carry out your wishes and watch over the financial responsibilities of the disabled person.

Check Out Related Legal Topics:

Uniform Probate Code – Learn Why It Works Well For Smaller Estates

Offshore Asset Protection – Learn Strategies To Protect Your Financial Assets

Executor Of Will – Learn What The Executor Responsibilities And Duties Are

Asset Protection Trust – Beware Of Scams What You Should Know Before You Set-Up Asset Trust

2 Responses to Special Needs Trust – Learn How It Will Help Your Disabled Family Member
  1. Bernard Szimonowitz
    June 23, 2011 | 9:24 pm

    I am a trustee of such a trust. Unfortunately one family member is challenging the legality of the trust, my question is, can we go to arbitration over this or we must go to court? Please answer if you can as this is an urgent matter.


    Bernard Szimonowitz

    My email is berniescopy@verizon.net

    • law1967
      July 2, 2011 | 7:07 am

      Hi Bernard,

      Thank you for your question. Our site is set up as a resource for legal information; however, I am not an attorney. My husband helps people gain unlimited access to top-rated law firms for a small monthly rate (as low as $17.00 a month). We have personally been using the service since 2002 and find it invaluable. If you’re interested, you can get more information and enroll here: https://www.prepaidlegal.com/MS/Multisite?site=hub&assoc=jsfischman

      Once enrolled, you would be able to speak with a provider attorney right away (during normal business hours).

      Let us know if you have any questions about the service.

      Thank you again,

Leave a Reply

Wanting to leave an <em>phasis on your comment?

Trackback URL http://www.legalresearchlaw.com/blog/special-needs-trust/trackback/
Content Protected Using Blog Protector By: PcDrome.