Who benefits from a special needs trust?

by | Apr 22, 2023 | Uncategorized

A special needs trust is a type of trust that is specifically designed to help disabled people. The trust helps the disabled person to maintain eligibility for government benefits, while also providing them with financial security. Special needs trusts are a good idea for parents of special needs children, because they can help ensure that their child will be taken care of financially even after they die.
If you are the parent of a special needs child, it is important to talk to a financial advisor about setting up a special needs trust. A trust can be an important part of your child’s financial future, and it can give you peace of mind knowing that your child will be taken care of financially if something happens to you. Speak with a Rademacher advisor today to learn more about setting up a special needs trust for your child.
A Special Needs Trust (SNT) is an estate planning tool that allows parents or guardians to maintain control over how their disabled loved one’s assets are used, while still providing them with much-needed financial support.
SNTs are created for the benefit of disabled persons under the age of 65. The assets held in trust are not counted as part of the beneficiary’s estate, which means that they will not affect their eligibility for government benefits such as Medicaid and Supplemental Security Income (SSI).
SNTs can be used to pay for a wide variety of things that can improve the quality of life for the disabled person, including:
– Medical expenses
– Housing costs
– Educational expenses
– Transportation costs
– Job training and support services
There are different types of special needs trusts as well. A Self-Settled Special Needs Trust is one that is established with the disabled person’s own assets, while a Third-Party Special Needs Trust is established with the assets of someone else, such as a parent or grandparent.
Special needs trusts are an important tool for parents of special needs children. They can help make sure that your child is taken care of financially, even if something happens to you. If you would like to learn more about setting up a special needs trust for someone you love, please reach out to us to discuss the options available to you.

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