The future is unpredictable, but there are certain steps you can take as a parent that allow you to protect the interests of your loved ones. Estate planning gives you the opportunity to implement certain tools that will allow you to provide for your kids even after you pass away. One way you can do this is by establishing a trust — a step that gives you the opportunity to set aside and protect assets for a specific purpose.
Trusts are useful estate planning tools, and there is a wide variety from which you can choose. Ohio parents of children with certain types of needs find that special needs trusts give them the chance to ensure their kids have what they need long after the parents pass away. If you have a special needs child, you may benefit from learning more about why this specific option could be useful to you.
The benefits of a special needs trust
Special needs children grow up to be special needs adults, and you cannot guarantee that you will always be around to provide for them. Even if they eventually live on their own, they may need specific types of assistance and support for the rest of their lives. They may need help with food, clothing and other expenses. A trust will allow you to set aside money for these things. Consider the following benefits of a special needs trust.
- You can leave money for your special needs child without passing it to him or her directly through a will.
- You can be certain that your child will benefit from the money you leave him or her without your child having to be directly responsible for its management.
- You can appoint a trusted individual to oversee the distribution of assets from the trust.
- The assets left in a special needs trust will have no bearing on your child’s eligibility for government benefits.
An assessment of your specific situation, including the needs of your child, will help you understand if a special needs trust is the most appropriate course of action for you. Every estate plan is different, but you can craft a strategy that will allow you to meet the unique needs of your family. This may include establishing a special needs trust or other type of trust for the benefit and care of a specific loved one.