As your child grows and matures, you may wonder when it is appropriate to start thinking about writing a special needs trust.
Determining when to write out your wishes is important not only for your comfort but also for your loved one’s future financial stability.
Importance of a trust
According to Forbes, a special needs trust allows you to protect any assets you have for your special needs beneficiary. You can put any money or inherited items aside for your child’s future use after your death. Creating this trust can help give you peace of mind that your loved one will have medical benefits, spending money and insurance in the future.
Time to plan
Usually, completion of schooling can signal the start of independence. Being proactive is helpful when creating trusts, and the teenage years are typically a good time to begin. Many parents look into this process when their child is around 14 years old, which is around the time future career or life plans start to take shape.
A look ahead
Once your child is a legal adult at age 18, he or she can receive essential government benefits based on income. This trust allows those who qualify to continue to receive Supplemental Security Income, or SSI, without giving up any assets to meet the monetary thresholds required by the state.
If your child is already getting SSI, and you wish to prevent future financial abuse or poor spending, a special needs trust may be beneficial. Examining your assets while your child is still a teenager will prepare you to craft a trust for the future.