Many Arizona parents of special needs children are not aware of the fact that there are specific legalities that should be taken care of with regards to their child’s future and government benefits. Drafting a will or trust online or DIY does not ensure that your child will retain all of the government assistance in the future. The best way to ensure your child is financially secure, remains a beneficiary of your trust as well as a beneficiary of government assistance, you need to set up a specific Arizona special needs trust.

What is a “Supplemental Benefits” Trust?

This is the same as a special needs trust. It is a specific set of documents that allows you to set up a trust and financial assistance for your child while not impairing their ability to receive government benefits.

What Government Assistance is at Risk?

If you do not set up a specific Arizona special needs trust, you are putting your child’s future government benefits at risk. These benefits include Supplemental Security Income (SSI), Arizona Health Care Cost Containment System (AHCCCS), and Arizona Long-Term Care System (ALTCS). These government benefits are crucial to your child’s medical and financial future, and if an Arizona trust is not set up specifically for your special needs child, you could put at risk all of these benefits.

Can’t I Just Set Money Aside in an Account for my Child?

If your child is getting any government assistance such as SSI or AHCCCS, naming them the beneficiary of any funds after you depart could put them at great risk for losing those government benefits.

What if I Have Already Drafted a Typical Trust?

In the event that something tragic does happen and you have not drafted an Arizona special needs trust, your child will not be protected from creditors and/or seizure of funds. Without a special needs trust, the trust beneficiary of a typical trust would be subject to creditors and seizure. However, because funds in a special needs trust belong to the trust itself, and not the trust beneficiary, no creditor can claim that money.

What if My Child is Sued?

In the event that your child is sued, by either creditors or an individual, the funds within that Arizona special needs trust are not subject to judgment and will remain in the trust.

It is imperative that you draft a special needs trust if you are the parent of a child with disabilities.

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.

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