Many people have loved ones who, due to some sort of chronic medical issues, require special care, and need help with various aspects of their life. For some of these people, a special needs trust can help to provide security for your loved one with special needs. But how do you know if a special needs trust is appropriate for your estate plan?
What is a Special Needs Trust?
In simple terms, a special needs trust is a type of legal arrangement that sets aside money or property on behalf of a loved one with special needs. These assets are left in the care of a trustee or trustees, who manage the property on behalf of your loved one in order to ensure they will always have the resources they need. Once the trust comes into effect, no property can be taken out of it without the permission of the trustee, which can help protect your loved one from being financially exploited.
How Does It Work?
While you organize the trust while you are still alive, it does not formally come into being until you pass away. At that point, the assets you set aside for the trust come into the care of the trustee or trustees you appointed when you created the trust documents. Those assets are considered the property of your loved one, who is the beneficiary of the trust, but the assets are managed by the trustee, who is responsible for ensuring they are cared for and invested as appropriate.
Why Might You Need This Type of Trust?
This sort of trust is for people who have a loved one that suffers from a developmental disability or other chronic medical condition that prevents them from being able to take care of themselves. These are people who may struggle with performing daily tasks, and may be unable to work to support themselves. With the trust, you can ensure they will have enough money to pay their bills and ensure their needs are met, even when you are not there to care for them.
Will It Be Enough?
A special needs trust is ultimately just one part of a broader estate plan. There are other steps you can take as well that can ensure your loved ones will be cared for when you are gone, but what works best for you will depend on your personal situation. That is why you should speak to a lawyer with experience handling estate planning, who can assist you with coming up with a plan that suits your needs.
The estate planning attorneys at David J. Lorber & Associates, PLLC will work with you to handle all of your trust and estate law needs, including assisting in estate law litigation. For comprehensive estate and elder law services in New York, call David J. Lorber & Associates, PLLC at (631) 750-0900 or contact us online to schedule a free consultation at our Setauket office.
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