Protecting Your Loved One With a Special Needs Trust

If, like Sabina and me, you have a loved one who is disabled, then you know how important government assistance programs can be to their well-being. But to qualify for these programs, your dependent must have limited finances. So, any inheritance you leave him or her could potentially put their eligibility for government assistance at risk.

So, how can you provide for a loved one without interfering with government assistance?

What you need is a Special Needs Trust.

This unique legal document allows you to provide for your dependent's supplemental needs without disqualifying him or her from programs such as Social Security and Medicaid.

Upon your death, any funds you intended for your disabled dependent will be transferred to a special trust, created for the sole purpose of providing for your dependent. Because the funds are not in your dependent's name and are managed by a third-party trustee, your dependent can continue to benefit from government assistance.

Of course, there are restrictions on what the trust can pay for but in general, you're allowed to provide for any supplemental needs, such as cable television, travel expenses, education, entertainment and the like. The trust can also provide your dependent with home health care services, a car, clothing and even pay for medical expenses. Just remember than any asset that requires a title or deed must be in the name of the trust and not your dependent.

This allows you to ensure that your disabled dependent is well provided for and enjoys a rich and happy life while still qualifying for those much-needed government programs.

Who Should Be Trustee?

Choosing a trustee for a Special Needs Trust is especially important because the person you choose will have authority and control over the funds in the trust. That means you need to be able to trust this person completely, especially if your dependent is mentally handicapped and unable to recognize any misappropriation of funds. Many people choose a parent or sibling of the disabled person to act as trustee, but you can select anyone you want, including a law firm or a financial institution.

Tips in Making a Family Tree for Your Estate Plan   Retirement Planning: It's About More Than Just Finances   Preparing and Writing Your Own Living Will   How to Include Your Pets in Your Estate Plan   Planning For Your Personal Effects   How to Avoid a Guardianship   

Last Will and Testament Template - Ensuring That Your Loved Ones Are Taken Care Of

When considering how to get your last will and testament drawn up you may have been told that any old piece of paper will do. This may be true in some states and in many cases, however it is important for you to keep in mind that if your will gets contested in any way the more legal your document looks the better the chances that it will hold up in court. While you do not need a lawyer it is important that you take the time to find a last will and testament template with which to make out your will if you want it to be taken seriously.

There are various laws in different states regarding wills so it is very important that you take the time to research the laws in your state before you set out to make your own will. There may be several steps you need to take, a certain way you need to make your will out, and you will need to have it witnessed in some way to make sure that it is uncontestable in a court of law. This is where a template can be very useful when making your will, you can use the template to get the general elements of a legal will but then you can edit it to reflect the laws in your state.

There are several elements that need to be in every will, you of course will need to identify yourself and your estate. This is important to ensure that people understand that it was actually you who wrote the will. A brief description of all of your general assets should be present, but this does not have to be overly specific, a description such as a home and its contents, monetary assets and life insurance will be sufficient.

You will need to name your beneficiaries and what is being left to them next, this is where you must be more specific because it is one the one part of the will that gets disputed the most. You should name alternate beneficiaries if something happens to the person named first, and you should also list any gifts, trusts or debt cancellations you wish to take place.

Finally you need to name an executor and address any issue of guardianship for your child, then sign your name and date it. There should also be a place for a witness to sign or notarize as well. By using a last will and testament template you can ensure that your document is as accurate and legal as possible and that there will be little chance of it being overturned in court.

Tips in Making a Family Tree for Your Estate Plan   Retirement Planning: It's About More Than Just Finances   Preparing and Writing Your Own Living Will   How to Include Your Pets in Your Estate Plan