Parents of special needs children often take steps to ensure that their young ones receive various forms of care. Unfortunately, a parent cannot expect to be around forever. Parents or guardians in California may worry about their mortality and their children’s’ financial well-being. Special needs trusts can provide some solutions to those concerns.
Special needs trusts fall under the legal category of estate planning. This involves setting up directives in case of one’s passing although some planning matters may establish directives while someone is alive. With special needs trusts, the planned agreement works to provide financial care for children while not undermining government assistance, such as SSI.
Financial strains could hamper living arrangements, which is why setting up a trust seems worthwhile. The grantor who established the trust often draws up the document so that the beneficiary maintains a decent quality of life. With a special needs trust, the young person gains several protections. For example, creditors might not be able to lay claims on certain funds or assets. There may be estate and inheritance issues involved when the child’s parents pass away. A trust may financially protect a child’s assets while also preserving necessary government assistance.
Naming a reliable trustee becomes necessary to make sure all matters related to the trust are in the right hands. A caring trustee could put the beneficiary’s money into safe investments to further make sure he or she remains in decent financial shape after the grantor passes away.
There are other things to think about when drawing up trusts. Choosing a specific type of trust that is best suited for the beneficiary is important. Working with an attorney may help ensure that the chosen special needs trust does what is intended.