Question:
How should I plan for my 22 year old son who has been disabled since birth?
Answer:
A “special needs trust” may be the best alternative.
The special needs trust is intended to supplement, rather than supplant, public assistance benefits that the disabled child may be entitled to receive under various programs such as Supplemental Security Income (“SSI”) and Medical Assistance. The purpose of the special needs trust, therefore, is to make sure that monies available to a disabled child does not result in the loss of public benefits if that is an important issue for you and your son. A special needs trust may be set up by a third party such as a parent, grandparent or guardian or it may be set up with the funds of the disabled child. The latter situation generally involves a personal injury settlement where the accident was the cause of the disability and a settlement is made for the benefit of the child.
Critical Note:
Even though most trustees named under a special needs trust are corporate trustees, such as a financial institutions, if the trust is a modest size, typically less than $75,000 or only holds a home, a non-corporate trustee can be named. This includes a family member who may then seek the advice of a financial planner if they do not currently have that expertise.
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How should I plan for my 22 year old son who has been disabled since birth?
Answer:
A “special needs trust” may be the best alternative.
The special needs trust is intended to supplement, rather than supplant, public assistance benefits that the disabled child may be entitled to receive under various programs such as Supplemental Security Income (“SSI”) and Medical Assistance. The purpose of the special needs trust, therefore, is to make sure that monies available to a disabled child does not result in the loss of public benefits if that is an important issue for you and your son. A special needs trust may be set up by a third party such as a parent, grandparent or guardian or it may be set up with the funds of the disabled child. The latter situation generally involves a personal injury settlement where the accident was the cause of the disability and a settlement is made for the benefit of the child.
Critical Note:
Even though most trustees named under a special needs trust are corporate trustees, such as a financial institutions, if the trust is a modest size, typically less than $75,000 or only holds a home, a non-corporate trustee can be named. This includes a family member who may then seek the advice of a financial planner if they do not currently have that expertise.
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