When you have a loved one with physical, cognitive or developmental disabilities, you may worry about how they will provide for themselves without your support. Creating and funding a special needs trust will help ensure that your loved one has resources when you cannot help them anymore.
Having those documents in place can also give you peace of mind, which is truly invaluable. A special needs trust won’t just provide financial resources. It can also protect your vulnerable loved one in many different ways.
Special needs trusts reduce the risk of financial abuse
When someone with cognitive or developmental disabilities has access to significant resources like an inheritance, they are vulnerable to abuse and misconduct from people who would like that control those resources. Putting your child’s inheritance into a trust makes it less likely that someone else will mistreat your loved one or manipulate them for access to those assets.
Your loved one won’t have to worry about qualifying for state aid
If you were to leave a standard inheritance for a disabled adult loved one who depends on certain government benefits, they could lose those benefits for years because of their inheritance. Keeping the assets in a trust and limiting how much your loved one can access can protect their ability to receive certain benefits.
Your loved one cannot waste or squander their inheritance
Someone who doesn’t consider the long-term implications of their actions could blow through thousands of dollars in just a few months. Wasteful spending or improper investment could completely consume the inheritance you wanted to provide for your loved one.
Thinking about the challenges an inheritance can create makes it easier for you to structure a special needs trust for their protection.