Caring for your child with special needs may extend throughout your adulthood. When parenting a child with special needs, there is a high probability he or she may outlive you. If you are your child’s caregiver, you have to make decisions on behalf of your kid’s future.
According to CNBC, setting up a special needs trust can help set your child up for a positive future.
Do not leave money or assets in a will
People who have disabilities can receive government benefits. Unfortunately, if someone has more than $2,000 in assets, they lose their benefits. If you leave money directly to your child or in a will, the assets may disqualify him or her. Leaving the assets in a trust allows you and your family to leave funds and other assets without having an impact on your child’s income.
Trust your family with your decisions
You may need a team to handle the special needs trust. There are various rules you have to keep in mind and you need to ensure that your child’s income and assets never exceed the limit. Additionally, when you tell your family about the trust, they can contribute to the trust instead of gifting items or money straight to your child.
The money you leave in a trust can go towards your child’s healthcare, dental care, recreation and other expenses. You can add tens of thousands of dollars to a trust or add millions of dollars. When it comes to your child’s future, you have to consider him or her in your estate plan.