2 Points To Keep In Mind When Planning A Trust Fund For A Special Needs Loved One
Posted on: 12 November 2019
Do you have a special needs child or grandchild? If so, you might want to consider a trust fund for them in the event of your untimely death. There are many reasons why this would be ideal. Some individuals with a significant amount of wealth might not see the full value of taking the time to consider this. Others who do not have a significant amount of wealth might deem it unnecessary. However, a trust fund could make life easier for your loved one and give you peace of mind. The following points will help you understand how a trust fund for a loved one with special needs is beneficial upon your departure.
Asset Protection
Some special needs individuals are not savvy when it comes to making sound financial decisions. This can make them a target for individuals who have bad intentions. A trust fund can determine how and when funds are allocated. This can protect your loved one against unscrupulous activities. It can also ensure that you have peace of mind that they will be taken care of if you pass away before them.
Protected Benefits
Some individuals assume that it is unnecessary to establish a trust fund for loved ones who receive government benefits. There are also individuals who believe that leaving a trust fund to a loved one who receives public assistance could interfere with their loved one's benefits. This is not always the case. You can establish a trust to be allocated at the monthly income limits in your state. This means that your loved one could receive their benefits and have enough funds to cover living expenses without going over the threshold. The limits vary by state, which is why it is ideal to include an estate planning lawyer when setting up the trust fund.
An estate planning attorney is a good resource to use for understanding additional reasons why it is ideal to establish a trust fund for relatives or loved ones with special needs. They can explain the legal ramifications. They can also review your assets to help you determine the best way to establish the trust fund. Some estates involve complex handling such as assets being distributed among multiple individuals. Proper estate planning can ensure that bickering among your loved ones is reduced or thwarted. It is best to take care of these matters as soon as possible because death could occur unexpectedly and the distribution of your estate could be a court battle that lasts for months or years if your intentions are not clear.
For more information, visit a website like https://www.linskylaw.com.
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