Learning More about Special Needs Trusts

The Importance of Endrew F. v Douglas
February 24, 2017
Transition Guide to Adulthood Published by U.S. Department of Education
Transition Guide to Adulthood Published by U.S. Department of Education
March 10, 2017

Learning More about Special Needs Trusts

Learning More about Special Needs Trusts | Los Angeles Legal Representation

Special needs trusts are often set up on behalf of a disabled or mentally challenged client who is called the beneficiary. Most of the time, a responsible family member becomes the trustee of this account and manages the finances or property within the account. Trusts are used to provide for the future needs of the beneficiary, to ensure that they do not lose their governmental assistance and to protect them from inheritance or legal problems.

NAV Law Provides Assistance in Setting Up Special Needs Trusts

While many parents agree that special needs trusts are needed to provide for their special needs child both while the parents are alive, and after they have passed on, most have no idea how to start the trust, how to fund it or how to protect it. The best person to contact is a special needs attorney, such as one from Newman, Aaronson, Vanaman, who has dealt with many of these concerns. The attorney can help with legal paperwork and can counsel parents or guardians about how much money or what type of property should be left in the trust.

While it can be difficult to know how much money needs to be left for the beneficiary in a trust, parents can make safe guesses by estimating how much they are currently spending and guessing on how the child will be cared for in the future. Individuals should consider housing, transportation, and medical costs as well as any care-giving and personal needs that will need to be met by a different individual once the parents have passed on. Parents should also know their child’s predicted life expectancy as well as payments that they should be entitled to through Social Security, Medicaid, and Medicare.

The figure that is determined can seem overwhelming at first. However, parents must be sure to also plan for their own retirement and future healthcare needs. They may also want to consider special life insurance policies, such as Second-to-Die policies, which can be helpful for families who are unsure whether the parents will outlive the special needs child. While parents may feel that they must fund the entire account and may forego their own future financial security to do so, they are encouraged to fund only the amount that they safely and comfortably can. A special needs attorney can help with these matters, and a financial planner can be key in the process as well.
Transition Guide to Adulthood Published by U.S. Department of Education
The Importance of Endrew F. v Douglas