| It is important to be aware of situations where leaving | | | | lifetime. |
| money directly to your child with special needs may | | | | Your loved one with special needs may profit in |
| cause more harm than good. It is difficult to determine | | | | several ways from the use of a Revocable Living |
| whether an individual with special needs will be able to | | | | Trust as opposed to a Testamentary trust. Trustees |
| make proper financial decisions for themselves, | | | | manage a Revocable Living Trust, which is created |
| especially if they have no previous experience doing | | | | separately from a family's estate for tax purposes. |
| so. Leaving money directly to a loved one with special | | | | Since this trust is established during a primary |
| needs may cause them to lose public benefits that are | | | | caregiver's lifetime, the trustees are usually the parents. |
| currently paying for their daily and medical care. The | | | | This allows those who know the individual with special |
| money you leave in your Will to an heir with special | | | | needs best to be able to make an organic plan that will |
| needs will only cover the cost of daily living and | | | | grow under the right circumstances. |
| medical care for one to three years, on average. After | | | | Another advantage to a Revocable Living Trust is that |
| this time, when the assets have run out, your child will | | | | it establishes a pattern that may be used by future |
| need to reapply for government benefits, and may be | | | | trustees. Parents who, as trustees, write checks for |
| left with no means to cover medical expenses while | | | | daily and monthly expenses from a Living Trust are |
| they are waiting for their new benefits to take effect. | | | | showing what types of things will be acceptable |
| To avoid these problems, establish a Special Needs | | | | expenditures from the Trust when new trustees take |
| Trust which provides supplementary income to your | | | | over their responsibilities. |
| loved one with special needs. The government cannot | | | | Finally, there is the question of medical or other care |
| use this trust against them when determining their | | | | for the parents of someone with special needs. More |
| eligibility for disability and other public benefits. It is | | | | than half of the population will spend time in a nursing |
| important to know that there is more than one type of | | | | home or other assisted care facility toward the end of |
| special needs trust, and there are distinct advantages | | | | their lifetimes. If parents of a child with special needs |
| to each one. Make sure you choose the right one for | | | | find themselves in this situation and have not set up a |
| your child with special needs. | | | | separate Living Trust, their estate may be drained |
| A Testamentary special needs trust is created in a | | | | before their deaths, leaving nothing to be placed in the |
| Will, and becomes effective once the parents or | | | | Testamentary trust. |
| primary caregivers of the child with special needs have | | | | All special needs planning must be adapted to fit the |
| passed. Essentially, the Trust is created when the | | | | circumstances of the beneficiary, which will be very |
| decedent's Will is probated, and all assets are | | | | different on a case-to-case basis. A Revocable Living |
| transferred into the Trust. | | | | Trust allows for the most flexibility and security. |
| A Revocable Living Trust, or Living Special Needs | | | | Assets can be built up over time, and the Trust will |
| Trust, differs in that in can be established while the | | | | continue without interruption in the event that |
| parents or caregivers are still living. Assets placed into | | | | something unexpected happens to a parent or primary |
| the trust can only come from people other than the | | | | caregiver. An experienced special needs planning |
| beneficiary of the trust, and they can be accumulated | | | | lawyer can set up the right trust for you and your |
| on a monthly or weekly basis throughout the parents' | | | | loved one. |