Adult and minor children with disabilities may require assistance with their financial, medical and housing needs after their parents die. With a special needs trust, you may prepare a secure future for a disabled child to help maintain his or her current lifestyle.
Also known as an SNT, a special needs trust may not affect your child’s eligibility for government assistance, as noted by CNBC. If your child receives Medicaid or Social Security benefits, the assets held in trust may not count toward the income limits.
What generally goes into creating a special needs trust?
An SNT requires documentation that communicates your child’s needs and a named trustee to carry out your instructions. By creating a letter of intent, you may provide a written account of your family’s medical history. You could include your child’s behaviors, routines and dietary needs.
Some disabled individuals require a team of personal caretakers. Your trust’s instructions could outline those who may care for your child such as your chosen doctors and medical staff. You could also include your child’s preferred religious services and end-of-life health care treatments.
How may a trust assist with my child’s residence?
If your child requires assistance with living arrangements, you may include instructions for your trustee to manage his or her housing. Your trust may also own property, which a trustee oversees while your child lives in it. The trustee may assist with the residence’s mortgage, property taxes and maintenance.
The benefits of a special needs trust include providing needed resources for a disabled child to lead a particular lifestyle after your death. With a named trustee and your instructions, the SNT could provide for your child’s daily living needs. Because a trust may own your assets, you may leave a child property without jeopardizing his or her eligibility for government support.