When trying to prepare financially for the future, parents with children with special needs face specific and sometimes disturbing challenges. Through the Social Security Administration, which helps to pay for medications and essential special needs services, these parents most frequently rely heavily on supplemental security income (SSI) benefits.Feel free to visit their website at Estate Planning Attorney in Logan for more details.
When preparing for the financial future of the child, the challenge faced is that a direct inheritance to a child would most likely disqualify them for public assistance, and the child is therefore most likely unable to provide for itself. In order to maintain the child’s right to receive SSI benefits and other public assistance, parents frequently face the very real possibility of having to disinherit a child.
The main purpose of a successful financial plan for a child with special needs is to provide funds for living without restricting the child’s access to the benefits available. A Special Needs Trust helps parents achieve this purpose.
The formation of the Special Needs Trust emerged out of the need for a vehicle that would allow parents to deal with different government restrictions on how benefits are disbursed. Generally, this planning device is focused primarily on guidelines from the Social Security Administration that allow payment for such services without adversely impacting SSI benefits or eligibility status. The Special Needs Trust must be carefully organised as a fund that supplements, without superseding, SSI arrangements for the child’s needs in areas such as shelter, food and clothing in order to fulfil its purpose of maintaining the eligibility of public assistance.
A Special Needs Trust includes four basic elements, as with other trusts: (1) a corpus (money or assets put in the trust); (2) a recipient (a child with special needs); (3) a trustee who distributes funds and has control over such disbursements; (4) an intent, often set out in the trust document, which directs the distribution of funds. In order to ensure that the trust document correctly and efficiently achieves its purpose, an attorney specialised in trust formation and management should be used.