By creating a special needs trust, you can establish a firm financial future for someone with disability. If you currently provide financial support for a child, grandchild or other individual who needs special assistance, you have the option of transferring assets, such as real property and funds into a special needs trust. It will secure long-term support for your loved one. In addition to receiving the financial benefits of the trust, the beneficiary may also continue to be eligible for governmental health care benefits as well as other governmental financial benefits for individuals with disabilities. Hence, the value of the trust assets will not affect the beneficiary’s eligibility for government assistance.
The beneficiary of the special needs trust is the individual who will receive the trust property. There is no age requirement for the beneficiary. Thus, you can establish a trust for an infant, child, elderly individual, spouse and the like.
When you set up a special needs trust, as the creator of the trust, you are the grantor or settler. The trust assets are transferred in the trust, and a trustee is required to manage the property in the trust. With a special needs trust, you can designate yourself as trustee in addition to naming a successor trustee. Upon your death or if you resign as trustee, the successor trustee will occupy the role as the trustee and manage the trust property.
The trustee is required to ensure that the trust property is distributed to the beneficiary in accordance with the terms of the trust document. The person who creates the trust must create a trust document, which determines how the property will be distributed to the beneficiary. Many people create special needs trust to provide for shelter and income for individuals with disabilities. The beneficiary does not have the power to terminate or revoke the trust. Also, the beneficiary cannot directly withdraw the funds from the trust. The trustee is the only person who has the power to use the trust property, but only to the extent that is allowable by the trust document.
When you initially create a trust, you can begin transferring property into the trust. You can also allow other people to transfer assets into the trust. When you create an estate plan, you can also transfer additional property into the special needs trust to provide support for the beneficiary upon your death.