As a Florida parent of a special needs child, you may be looking to create a special needs trust to help your child retain access to government benefits after your passing. Special needs trusts allow you to provide for your child without making him or her ineligible for benefits, and they come in two main types: the first-party special needs trust, and the third-party special needs trust.
According to SpecialNeedsAlliance.org, you need to name someone a trustee if you decide to create a third-party special needs trust. Some families choose to give the responsibility to a brother or sister of the individual with a disability, but this is not always the most appropriate option. When choosing a trustee for your special needs trust, consider the following.
There are tax implications involved with a special needs trust. If possible, you may want to name a trustee who has knowledge in this area. Otherwise, consider the fact that the trustee you name may need to enlist the aid of a tax professional.
Government benefit complexities
It is important that your trustee understand the rules associated with receiving government benefits. Doing so might involve anything from understanding how distributions may impact Medicaid and other forms of assistance to communicating with government agencies when necessary. Because of the complexities involved, you want to make sure to appoint a trustee who is responsible and meticulous.
Creating a special needs trust is an important part of providing for your child with a disability once you die. Taking care and time to appoint an appropriate trustee should help ensure your child receives what he or she needs in your absence.