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Going over the benefits of a special needs trust

On Behalf of | Oct 4, 2021 | Estate Planning

If you are in the process of setting up an estate plan, it is essential to review your options closely. Moreover, you need to understand that when it comes to estate planning, everyone is in a unique situation. For example, if you have a family member with a disability, you could help protect their future by creating a special needs trust.

Special needs trusts offer a number of perks. You should carefully go over the ins and outs of this strategy and determine whether this is the right move.

How do special needs trusts help disabled beneficiaries?

If you worry about your disabled loved one’s future, a special needs trust could provide a sense of relief. According to the Montana Secretary of State, special needs trusts can offer other advantages. For example, if you create a special needs trust for a loved one with a disability, the assets they receive from this trust do not count as income with respect to certain government benefits, such as Supplemental Security Income and Medicaid.

By passing down assets to a disabled beneficiary through a special needs trust, you can help them maintain their eligibility for these crucial benefits.

How should you approach setting up a special needs trust?

Often, it is helpful to discuss your options with family members. Make sure you have a solid understanding of your financial circumstances and your disabled loved one’s situation. Find answers to any questions you have and address any potential concerns in a timely manner. By setting up an effective trust, you and your entire family could find peace of mind.