If you have a person with special needs in your Texas family, you may be concerned about your options to provide support throughout their lifetime. There are several options that can help you to protect loved ones living with a disability during your life and as part of your estate plan. For example, ABLE accounts can provide access to funds on a regular basis. However, a special needs trust may also be an important part of a long-term structure to provide support, including after the trust’s creator passes away.
Special needs trusts offer unique benefits
A special needs trust is a specific type of trust that holds financial assets for a beneficiary with disabilities. The trust can receive assets from a variety of places, including lifetime gifts from family members, legal settlements for the benefit of the disabled person and through distributions as part of an estate plan.
Trusts to protect the beneficiary
There are several benefits of using a special needs trust to provide for a loved one with disabilities. By naming the disabled person as a beneficiary in your will, you could inadvertently prevent them from receiving Medicaid, Supplemental Security Income, and other essential benefits. Special needs trusts can improve the beneficiary’s life without disrupting these key programs. In addition, you may name a trustee to manage the investments and distribute the assets. This is particularly important if the beneficiary is unable to manage their finances alone. The trustee can help to ensure that the funds are taken care of and provide long-term resources for the beneficiary.
When considering how best to provide for a family member with disabilities, a special needs trust may be a worthwhile option. An estate planning attorney may help you to create this type of trust as part of your overall plan for the future.
