A special needs trust is a type of legal arrangement that can allow you to care for the needs of a loved one who cannot handle their own financial affairs. It places a certain amount of assets in a trust to be managed by someone else, who will handle those assets on behalf of your loved one. Here are five reasons you should consider a special needs trust for your loved one:
- You can make sure your loved one will be taken care of
- Unfortunately, as much as you might want to be around for your loved one forever, you cannot guarantee that will be the case. Along with other legal arrangements, a special needs trust can ensure your loved one will be cared of even when you are not there to care for them yourself. That way, you do not need to worry what will happen if anything should happen to you.
- You can place your loved one’s care in the hands of someone you trust
- When you create a special needs trust, you appoint a trustee or trustees to oversee the trust. This trustee or trustees will then be legally obligated to act in the best interests of your loved one, ensuring that their financial matters will be handled appropriately. That way, you can make sure that someone you personally trust will care for your loved one, rather than placing their fate in the hands of impersonal bureaucrats who may not give them the care they need.
- You can protect them from exploitation
- There are a shockingly large number of people who see those with special needs and only think of how they can exploit them. This includes tricking or intimidating people with special needs into giving up their money or property. With a special needs trust in place, you can make sure none of their money will be taken by dishonest people who are only looking to take advantage of your loved one.
- You can protect their assets from taxes or debt collectors
- Just because your loved one has special needs does not mean they cannot be subjected to pressure from tax collectors and debt collectors. Without someone to guard them, some people are willing to leave people with special needs destitute, taking their money to repay debts without concern for the impact it will have on their lives. While their assets are in a trust, however, they can be protected and avoid losing everything to taxes and debt repayments.
- You can make it a part of a larger estate plan
- Ultimately, a special needs trust is just one part of a more comprehensive estate plan. Your estate plan can not only determine what will happen after you pass away, but create plans to protect your loved ones while you are still here. That is why you should speak to a lawyer with experience handling estate law issues, who can help you to determine what might work best for you and your family.
The estate planning attorneys at David J. Lorber & Associates, PLLC will work with you to come up with a plan that protects your interests and ensures that you and your loved ones are taken care of. 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.