If you are interested in setting up a special needs trust for a disabled loved one, there is no better time than now to consider the pros and cons of doing so. While you can learn quite a bit on your own, one of the best steps you can take is to contact an experienced estate planning attorney.
With a legal professional showing you the way, you will have somebody on your side who knows what it takes to successfully create a special needs trust. On top of this, none of your questions will go unanswered.
Most people are aware of the primary benefit of a special needs trust: the ability to preserve eligibility for government programs, including Medicaid and SSI. However, there are several other benefits to consider as well:
- The money used to fund a special needs trust is tax deductible. Discuss this with your accountant before doing anything.
- With a special needs trust, you can be rest assured that the money is used to take care of your loved one with a disability – it will not be used for anything else.
- Funds cannot be taken by creditors to pay debt. As noted above, it is used solely for the care of the disabled party.
Special Needs Trust in Baraboo Wisconsin – The Cons
On the other side of the equation, there are some potential drawbacks associated with the creation of a special needs trust:
- The cost of setting up a special needs trust is more than what many are willing to spend. Along with the upfront cost, do not overlook the yearly management cost. Depending on your state, there may also be a minimum amount required to create a special needs trust.
- The beneficiary of the trust can only access the money if it is released by the trustee. For this reason, it is a must that you are 100 percent confident that this person is trustworthy.
Have you decided for or against a special needs trust? At this point, you may still have questions that need answered. There is nothing wrong with taking your time as you attempt to make this decision. Not only is this going to impact you now, but it is going to do the same to your loved one in the future.
Consult with an experienced estate planning attorney who can help you better understand the ins and outs of creating a special needs trust. Go to KH-Law.net to schedule your free consultation.