If you have a loved one who requires special care and support, you may have concerns about what will happen to him or her in the future if you are no longer around to care for him or her. There are ways you can craft an estate plan that will allow you to address these concerns and ensure that a loved one will have what he or she needs even after you are gone. One way to do this to establish a special needs trust.
A special needs trust is a specific type of estate planning tool that provides you the opportunity to set aside and protect assets for a specific use. This specific use may include providing for certain financial needs that the beneficiary of the trust may have in the future. This trust is a practical addition for your plan if you care for or provide for an individual who cannot care for himself or herself.
The benefits of this type of trust
There are certain benefits to establishing a special needs trust. One of the main benefits is that you will have assurance that your loved one will have what he or she needs even if you cannot personally provide it. A trust is a better way to not only protect your wealth, but to also ensure that one uses it appropriately. Other benefits of a special needs trust include:
- The proceeds of the trust will not affect a beneficiary’s eligibility for government benefits.
- You can name a specific person to act as the trustee, who will then oversee the distribution of assets from the trust.
- The special needs trust can cover needs that government benefits may not cover, such as clothing or other necessary items.
This type of trust can provide you with peace of mind as you work to ensure that those you leave behind have what they need for safety, security and stability.
Creating your best estate plan
There is no single ideal estate plan. You will benefit from creating one uniquely suited to your objectives and goals for the future. An assessment of your specific situation can provide you with insight regarding how to craft a plan that will allow you to care for your Texas loved ones. As part of your estate plan, you may benefit from establishing a special needs trust.