Why a Special Needs Trust is Important

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Why a Special Needs Trust is Important A special
needs trust is an important legal item that
parents of special needs children should look
into with the help of a family law attorney in
New Jersey. At the same time, if you have an
adult child or an elderly parent who has special
needs, you should also look into the benefits of
this type of trust. A special needs trust can
help provide for your loved one without removing
his or her eligibility for government benefits.
How? The trust owns the assets, not the person
for whom it was created. This means that the
beneficiary of the trust is still eligible for
Medicaid and Supplemental Security Income (SSI).
Provide Assets for a Family Member Upon Your
Death One of the most important reasons why you
should create a special needs trust is for you to
provide assets for a family member with special
needs upon your death. These assets can be used
by your loved one for anything, including paying
rent, buying furniture for a home, paying
medical bills, and much more. The initial
language you choose for the trust will help
determine how the funds can be used. Assign a
Trustee Another reason why a special needs trust
is important is that it allows you to assign a
trustee. If you do not want to manage the
finances and investments of the trust, and if the
beneficiary of the trust is not mentally capable
to manage the trust on his or her own, a trustee
will be able to do so. The job of the trustee,
aside from investing the assets, is to make sure
that the assets are being used as intended by
the person who created the trust. Keep
Government Aid for a Loved One If you name a
family member in your will who receives
government aid and the inheritance is more than
2,000, it can limit the aid your loved one is
subsequently eligible to receive. In order to
prevent aid from being taken away, you should
create a special needs trust. Life insurance
benefits and other inheritance can be directed
into a special needs trust so your disabled loved
one does not have his or her government benefits
taken away. Permit Other People to Contribute to
the Trust
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A special needs trust can receive contributions
from multiple people, not just the person who
created the trust. Each year, contributions up to
15,000 can be made by an individual. Married
couples can contribute up to 30,000 per year to
the trust without triggering any gift tax or
generation-skipping tax. Contributions can be
made to a special needs trust using cash,
securities and other financial resources. The
most affordable way to fund a special needs trust
is through a second-to-die life insurance
policy. Looking to Create a Special Needs Trust?
Call Giro Law Today If you have a disabled child
of any age, or a disabled parent, it is important
for you to create a special needs trust. Call
the office of Giro Law in Hackensack, New Jersey
at [phone] to schedule a consultation
about your case.