Florida residents who have a special needs child in their lives have several options for securing that child’s future. One reliable option for ensuring your loved one is taken care of after you’re gone is setting up a special needs trust.
A special needs trust allows your special needs child or relative to receive money that’s managed by another party. The trust is designed to provide for the special needs individual without jeopardizing his or her right to government assistance.
How to set up a special needs trust
The first step to setting up a special needs trust is choosing a trustee. This trustee will manage all aspects of the trust on behalf of the beneficiary with special needs.
After that, you’ll want to set up the terms and conditions of the trust. This includes all financial assets that are placed into the trust, who the beneficiary is and the rules of the trust.
Setting up the trust in a way that benefits your child or loved one can be the most challenging part. Many people turn to a third party to help them draft up the trust in a way that would give their child or loved one access to most government benefits and programs.
After the trust has been drafted, it must be signed and notarized. From there, the trust account must be opened and funds deposited into it.
What’s in a special needs trust?
Some people can choose to include stocks, financial assets, patents, and even jewelry into the trust. A trust goes into effect as soon as it’s created, so this can be a great financial planning and estate planning tool. It’s important to closely manage the trust while you’re alive and get help if you need it.