The Special Needs Trust
Until 1993, as a parent with a disabled child, you faced a difficult decision: if you left a legacy for your disabled child, you might make your child ineligible for government assistance.
When the federal government enacted the Omnibus Reconciliation Act of 1993, however, it made it possible for you to 1) provide funds to support your special-needs child and 2) retain your child’s eligibility for federal, state and private charitable benefit programs.
The Omnibus Reconciliation Act of 1993 excluded from benefit program eligibility requirements the legacy left to special-needs children in a Special Needs Trust.
How to Secure the Future with a Special Needs Trust
The Special Needs Trust is simple to establish, and it not only provides immeasurable peace of mind, it also gives you complete control over your child’s care.
You work with your estate planning attorney to appoint Trustees for your child’s Special Needs Trust. The Trustees oversee your child’s well-being and manage the estate your or anyone else leave for his or her benefit. So there is no need for a probate court to determine your child’s fate.
Unlike the guardian or conservator a probate court might appoint, these Trustees are people you know and trust. Relatives or close family friends can be appointed to supervise your child’s personal care.
To work with financial institutions and manage the estate, you may want to appoint a professional financial advisor, as a Co-Trustee.
As part of setting up your child’s Special Needs Trust, you provide detailed written instructions in the trust to direct the Trustee’s activities. By law, Trustees must follow these instructions to the letter. So you have a tremendous degree of control over your child’s education, housing, and other needs.
Best of all, the Special Needs Trust preserves your child’s eligibility for federal, state and charitable benefit programs. The only requirement is that the funds withdrawn from the Special Needs Trust must be for purposes other than those covered under the governmental and private benefit programs. The concept is fairly simple, but the execution is technical and complex. Special Needs Trusts are carefully scrutinized by government benefits agencies and one error in the language of the trust can undo everything it is designed to accomplish.
If you found this information useful,
get updates by RSS or ATOM or Subscribe to Elder Law & Estate Planning Legal Resource by Email
Order Your Free Copy of How to Secure the Future for Your Disabled Child
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Until 1993, as a parent with a disabled child, you faced a difficult decision: if you left a legacy for your disabled child, you might make your child ineligible for government assistance.
When the federal government enacted the Omnibus Reconciliation Act of 1993, however, it made it possible for you to 1) provide funds to support your special-needs child and 2) retain your child’s eligibility for federal, state and private charitable benefit programs.
The Omnibus Reconciliation Act of 1993 excluded from benefit program eligibility requirements the legacy left to special-needs children in a Special Needs Trust.
How to Secure the Future with a Special Needs Trust
The Special Needs Trust is simple to establish, and it not only provides immeasurable peace of mind, it also gives you complete control over your child’s care.
You work with your estate planning attorney to appoint Trustees for your child’s Special Needs Trust. The Trustees oversee your child’s well-being and manage the estate your or anyone else leave for his or her benefit. So there is no need for a probate court to determine your child’s fate.
Unlike the guardian or conservator a probate court might appoint, these Trustees are people you know and trust. Relatives or close family friends can be appointed to supervise your child’s personal care.
To work with financial institutions and manage the estate, you may want to appoint a professional financial advisor, as a Co-Trustee.
As part of setting up your child’s Special Needs Trust, you provide detailed written instructions in the trust to direct the Trustee’s activities. By law, Trustees must follow these instructions to the letter. So you have a tremendous degree of control over your child’s education, housing, and other needs.
Best of all, the Special Needs Trust preserves your child’s eligibility for federal, state and charitable benefit programs. The only requirement is that the funds withdrawn from the Special Needs Trust must be for purposes other than those covered under the governmental and private benefit programs. The concept is fairly simple, but the execution is technical and complex. Special Needs Trusts are carefully scrutinized by government benefits agencies and one error in the language of the trust can undo everything it is designed to accomplish.
If you found this information useful,
get updates by RSS or ATOM or Subscribe to Elder Law & Estate Planning Legal Resource by EmailOrder Your Free Copy of How to Secure the Future for Your Disabled Child
Return to Main Page
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