Being the parent of a disabled child can bring many special and unique joys to your life. It can also bring some very real and specific concerns. If your child’s disability is severe enough to prevent his or her ability to earn a living or fully care for him or herself, one such concern is how to financially provide for your child. During your lifetime and after your death, you child will need access to funds in order to live.
The Pacer Center explains that a supplemental care trust can help you meet this need. More commonly known as a special needs trust, this document can be used before or after your death. Properly created, a special needs trust can also allow your child to continue to receive government assistance such as Medicaid or Supplemental Security Income benefits.
Some important things to know about special needs trusts include the following:
- They cannot be used to pay for room and board or other such everyday living expenses.
- They cannot be used to give cash directly to your disabled child.
- They can be used to pay for home health aids, rehabilitation, transportation and education.
- The beneficiary must be the trust, not your child.
Some sources for funding a special needs trust include retirement account assets, life insurance payouts, physical properties, inheritances or other family gifts, savings account assets and even funds received from Social Security Survivor benefits.
To learn more about incorporating a special needs trust into your estate planning in Florida, you can visit our website at any time.