Some Legal Concerns – Special Needs Trusts

When planning for the future of a Special Needs loved one, having the right legal documents is paramount. You may be using a Last Will & Testament or you may be using Living Trusts to transfer assets to your beneficiaries in the future. Of course, multiple approaches work; however, please keep in mind these simple concerns when putting together your legal documents when planning for the future of your Special Needs loved one.

  • Consider creating a Special Needs Trust for the benefit of your Special Needs loved one.  You can accomplish this within your will, with your living trusts, or as a stand alone document today.
  • Make sure you exclude the disabled person by name in any of your legal documents.  Put the assets into a trust for their benefit to preserve government benefits in the future and protect them financially from predators.
  • How and when should the assets go into a Special Needs Trust?  You should consider whether you want the Special Needs Trust to get funding upon your incapacity or at your death?

Some key points to remember regarding a Special Needs Trust:

  • The trust does not belong to the individual… it’s not their money, it’s your money for their benefit.
  • The trust is not in the name of the individual… the trust is its own person.
  • The trustee has absolute discretion in disbursing the funds… protecting the dollars.
  • The trust is for supplemental needs only… preserving the funds and ensuring the use of government benefits.

Please contact a Golden Financial Services Advisor today.  We are available if you have any planning questions or concerns.  Please note that we are financial advisors and not attorneys and we do not authorize the use of this information as a substitute for legal advice.

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