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Understanding special needs trusts

On Behalf of | Jan 11, 2021 | Uncategorized

Assisting a person in Indiana who requires special needs is complex, and a myriad of factors ought to be considered. Special benefits trusts come in handy if you have a loved one who requires special needs. A special needs trust ensures that he or she will receive benefits even after you pass on. When you leave money directly to a person with special needs, he or she may no longer access government benefits in the future. However, leaving the cash in a special needs trust account does not jeopardize the individual’s eligibility for government benefits.

How do you set up a special needs trust?

You must first create the trust document to set up a special needs trust. You do not need a lawyer to create the trust. You can also tailor the benefits to a specific situation. However, to create such a trust, you will require an attorney. While setting up the trust for another person, your name shall appear as the grantor while the receiver shall be the trustee. However, the grantor is the trustee until he or she dies or resigns. Every person named as the trustee remains obligated to follow the conditions set in the document.

Who adds property to a special needs trust?

Everyone, except the beneficiary, can contribute to a special needs trust. However, parents who want their special needs children to benefit create the most special needs trusts. Although this is the most common circumstance, family relationships are not mandatory when creating a special needs trust. Furthermore, a single beneficiary is not limited to a specific number of trusts.

What kind of property does a trust hold?

Although a trust commonly contains the items in a person’s estate, patents, stocks and even jewelry can be included. However, since the trustee’s role is to use the money to benefit the beneficiary, he or she has the right to sell the items.

A special needs trust is essential when taking care of people with special needs. If you need to set up a special needs trust, do not hesitate to contact an estate planning attorney.