What is a Special Needs Trust?
Diligent planning for one’s family now may avoid unfortunate consequences later. To the extent possible, the consultants at Special Needs Financial Advocates at 719-388-0215 are available to assist you.
Families with a physically or developmentally disabled child should consider setting up a trust to provide for their child’s special needs. This trust is often referred to as a “special needs trust ”. The special needs trust provides support over and above resources which may be available to the child under Medicaid or SSI. The establishment of such a trust is often done in conjunction with one’s estate planning, and the services of an attorney are recommended. Some key points that should be taken into consideration are:
- What resources are allowed under the State and/or Federal Medicaid programs;
- What property should a parent consider transferring to such a trust;
- Who should serve as the Trustee, i.e. the person or institution responsible for administering and making decisions for the trust;
- Whether the trustee should be required or requested to consult anyone with respect to distributions;
- Whether both principle and income should be available if the Trustee deems necessary;
- Whether the trustee should be required to be informed of the requirements for government benefits;
- Whether the trustee should be available for rehabilitative care, recreation, entertainment, vacation, travel, reimbursement of other family expenses incurred for travel;
- Under what circumstances should the trust be terminated; and
- Upon termination of the trust, to whom should the remaining assets be distributed.
