None of us can predict the future, but we all want to ensure that our children are protected, no matter what. If you have a special needs child, you will likely feel an enhanced sense of responsibility. You may worry about making sure that they are provided for financially for the rest of their lives so that they are able to live fully and can get access to the best possible support and care.
Many special needs parents conclude that the best possible way to ensure that their child will be provided for is through the creation of a special needs trust. A special needs trust is a type of fund that can be contributed to by multiple parties, with the purpose of benefiting a person with a disability. It has several advantages from a financial perspective in comparison with simply leaving an inheritance for the person in your will.
What are the differing types of special needs trusts?
There are two main types of special needs trusts that can be set up. A first party trust is one that is usually set up for inheritance purposes. This means that the beneficiary has control over how the assets are spent. When the beneficiary passes away, the funds will be subject to a government payback clause.
A third party trust is set up so that the assets are managed by a trustee rather than a beneficiary. This can mean that the assets held within the trust can be redistributed to other family members if the beneficiary passes away.
What types of assets can be stored within a special needs trust?
It is possible to store many different types of financial assets within a special needs trust. You may want to store property, stocks and IRAs in addition to cash within the trust.
What are the financial benefits of a special needs trust?
One of the key benefits is that the disabled person will still be able to take advantage of government benefits that are based on income.
If you want to make sure that your special needs child has a secure future in the state of Georgia, you may want to conduct further research on special needs trusts.