When adults have a child, they want to provide for their child and make sure they are taken care of. If their child has special needs, they may need to provide for the child even more. These children may need more guidance as they get older. They will need someone to help care for them. If a family member is unable to do this, they will need a caregiver. This can become quite expensive. If they need assisted care on a daily basis, it can become financially draining. As a parent, you may wish to prepare your child for this. In order to do so, you can set up a special needs trust. This may be able to provide your loved one with the money they need to provide care for themselves. A special needs trust can address many different aspects of their life. As the primary caretaker of a special needs individual, you should name another individual who can care for them if something were to happen to you. A trust can decide who will look after the dependent party once you pass. If a special need individual is receiving public benefits, the trust can guarantee the continuation of those benefits throughout their life. Through the trust, you can also provide extra money that these dependents may need to sustain their standard of living.
Are there different types?
For special needs trusts, there are three types. These include a third party special needs trust, a first party special needs trust and a pooled special needs trust. Each trust can differ based on their guidelines and what benefits they allow. A third party special needs trust is made by an individual other than the dependent party with special needs. This trust can be made during the individual’s lifetime or at death to provide for the special needs party. It may be funded using compensation that comes from life insurance policies. Other family members can provide gifts to the trust that can prove to be more beneficial. A first party special needs trust can only be made by the legal guardian of the dependent individual and it only includes their money. It must be an irrevocable trust. The beneficiary must be under the age of 65. Public agencies may require reimbursement rights upon death. A pooled special needs trust provides assets from different members, including family or friends, and gathers them together into a larger investment fund, which requires the establishment of a disability. This trust needs to be developed through a nonprofit organization.
Working with an experienced estate planning attorney, such as Jaci Feldman of the Woodland Hills, California, Law Office of Yacoba Ann Feldman, will ensure that you are taken care of when you need it most. Contact The Law Offices of Yacoba Ann Feldman to schedule a consultation today.