Types of Special Needs Planning

A family with a Special Needs loved one is in a unique situation when it comes to planning for their future.  You may be planning for a loved one that is currently receiving government benefits or you may simply be concerned about their vulnerabilities to financial predators.  Either way, you need to carefully plan for the day when you are no longer around.  There are many reasons why your loved one should not receive a direct inheritance from you or from family members.  Here are a few ways to accomplish a future transfer of funds for your loved ones benefit without a direct inheritance – to protect their future and preserve their benefits.

  1. Disinherit the Special Needs Individual
    • The parents lose control of the money.
    • Good intentions, but very risky and not recommended.
  2. Testamentary Special Needs Trust
    • Create a Last Will & Testament that will establish the Special Needs Trust inside the will at the time of your death.
    • Nothing happens until you die.
  3. Revocable Special Needs Trust
    • A functioning, stand-alone entity – see your planning in action today.
    • Can change, update, destroy at your discretion.
    • Maintain full control of the funds inside the trust.
    • Still need a Last Will & Testament to pass on inheritance to the trust for the Special Needs individual.
  4. Irrevocable Special Needs Trust
    • Once created, difficult, if not impossible to amend.
    • Still need a Last Will & Testament to pass on the inheritance to the trust for the Special Needs individual.
  5. Disability Special Needs Trust w/ Medicaid Payback
    • Used only if Special Needs individual has his/her own funds.
    • This type of trust will need to be created if:
      • Injury Lawsuit
      • Back Payments from S.S.I.
      • Direct Inheritance
      • Other Lump Sum received that will disqualify a person for government benefits.

Please contact a Golden Financial Services Advisor to determine the best solution for you and your family.  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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