Every parent aims to ensure the best possible care and future for their children before passing on. However, this seemingly mundane goal presents a significant challenge for parents of children who may require lifelong support.
For parents of children with special needs, navigating the aspects of life planning requires careful consideration. Fortunately, financial planning tools, like a special needs trust, are available for those who aim to protect the well-being and financial security of their child with special needs.
Ensuring eligibility for government benefits
Government assistance programs like Supplemental Security Income and Medicaid have strict income and asset limits. If a parent dies and leaves their money in the bank, the asset automatically passes on to their child as inheritance, leaving them ineligible for much-needed benefits from the government. A special needs trust can hold assets on behalf of the child while ensuring that they continue to receive government support.
Securing financial stability for a child with special needs
By establishing a special needs trust, a parent can protect their child and their assets from those who want to take advantage of them. Trustees manage the special needs trust according to the parents’ instructions. This allows parents the peace of mind that their child will not fall victim to financial exploitation or lose their assets through mismanagement.
A special needs trust also enables parents to extend a guiding hand on how the assets will be used in the future, ensuring that their child’s education, medical care, living arrangements and other personal needs are accounted for and well aligned with their wishes.
For any parent, securing a bright and financially stable future for their child is undoubtedly their top priority. This is why establishing the right financial foundations early on in life is not just a wise decision but also a generous act of love and foresight. A special needs trust is a cornerstone of responsible estate planning for any parent seeking to ensure that their child will continue to be cared for well into the future.