What is a Special Needs Living Trust?

Though it’s something that is not often talked about, special needs living trusts are incredibly important for families living with a special needs child or parent. It is a parent’s greatest fear; what will happen to my child if I can no longer provide for them? When you have a special needs child, that fear never, ever goes away. Even as your child grows into an adult, many special needs adults still rely greatly on their parents and the family dynamic to provide both financially and emotionally for them. A living trust is a crucial way to be absolutely sure that your child will receive the financial assistance he or she needs after you’re gone.

Special Needs Government Benefits

Government benefit programs that are available for those with special needs can be of great assistance; however they just don’t provide enough financial support. Many times, the government benefits can leave a special needs individual living way below the poverty level, and without the assistance of friends and family life can become very depressing.

With that said, it’s extremely important that families with special needs kids consider speaking to an estate attorney regarding an Arizona living trust. Government rules concerning contributions and assistance to special needs family members after death can be confusing. According to Autism-PDD.net, the current government benefit programs do permit the family to provide some supplementary income and resources to the person with a disability. However, the government regulations are very strict, and they are carefully monitored.

Some restricting government provisions can actually revoke all benefits to the child. For example, in the unfortunate event that the parents are no longer around to provide for the special needs child, that child would have the benefits of government assistance. And, though limited, it would help out a bit. However, if the child was left an inheritance through a living trust in the wrong legal manner, that inheritance could, in fact, revoke all government benefits to the child. It’s confusing, so speak to an Arizona estate attorney.

Special Needs Living Trust

A specific special needs trust was specifically developed and created for families with special needs kids to protect those kids financially after the parents are gone. It was also specifically developed so that the special needs child could maintain eligibility for government benefits while receiving inheritance money.

According to Autism-PDD.net, this is why it is vital that any family contemplating using a SNT consult an experienced attorney — not just one who does general estate planning, but one who is very knowledgeable about SNTs and current government benefit programs. One wrong word or phrase can make the difference between an inheritance that really benefits the person with a disability and one that causes the person to lose access to a wide range of needed services and assistance.

If you have a special needs child and are preparing for the future, talk to us immediately. Scott is highly experienced in creating special needs living trusts in Gilbert, Arizona.

Need Help?

If you are not sure as to what legal document you currently have contact one of our professionals to help you with your estate planning. They will make sure you have all of your grounds covered and have the right legal documents that best suite your wants and needs.