If you have a child with special needs, then you should consider creating a special needs trust. These trusts have several benefits that relate to your child.
A special needs trust can provide financial security. Your child may require more care and more medical treatment than the average person. When your child is young, you probably do a lot of this work yourself: Yet, there will come the point where this is no longer feasible, not least when you die.
Health care costs that a person needs for their whole lifetime can soon add up. If you have to pay for them yourself, it could empty your accounts in no time at all. The same would happen with any assets you left your child – health care providers would soon swallow them up. The solution is to use a special needs trust to keep money separate and avoid benefits agencies counting it when assessing your child’s right to help with health care funding.
A special needs trust ensures assets are adequately managed
Depending on your child’s specific condition, they may have less ability to handle money or make decisions. Unfortunately, there are always people out there willing to take advantage of this. When you put assets into a trust, the trustee will manage those assets for your child’s benefit and protect the assets from unscrupulous individuals.
Special needs trusts help protect the whole family
A special needs trust focuses on benefiting your child with special needs. Yet, it will also benefit you and any other children you have. Making it easier for your child to receive benefits and financial help for health care ensures there is more money left over for you and your other children.