It can be incredibly difficult to care for a loved one with special needs, and often, California families facing this unique challenge often wonder about how they can continue to provide care long into the future. There is not way to control what happens in the years ahead, but there is a way to plan for contingencies and ensure that a loved one has what he or she needs no matter what.
One of the ways that you can protect the interests of a loved one with a disability or other unique challenge is to set up a special needs trust. This small effort can be a huge asset in the future, setting aside and protecting certain funds for a person who cannot care for his or her own needs. By setting up this type of trust, you can rest easy knowing that your family member has what he or she needs, even long after you are gone.
What you need to know about a special needs trust
A special needs trust is not the right step for every family, but it could be right choice for yours. It can be beneficial to know what this means and how it could be an added layer of protection for your family. Some of the benefits of a special needs trust include:
- Assets and money left in the trust will not affect your loved one’s ability to receive government assistance, health care and subsidized housing.
- A special needs trust is an appropriate way to leave an inheritance for a loved one with special needs or disabilities or set aside the proceeds from a lawsuit settlement.
- You may appoint a trustee to oversee the administration of the trust when it is necessary.
Simply including your special needs loved one in your will is not sufficient to protect his or her financial interests. You would be wise to ensure the protection of your assets.
Control over your money and assets
A special needs trust is a way that you can effectively control what happens to your assets, especially those you want specifically designated for the care of a particular beneficiary. This step can protect money that your loved one may need for health care, food, housing and other needs in the future.
Your complete estate plan may be much more than just a will. If you believe that you could benefit from setting up a special needs trust, you would be wise to act quickly to protect your hard earned money and ensure that its use is what you intended.