A special needs trust is a specific type of trust that is designed to benefit a specific type of beneficiary. These beneficiaries are generally disabled or battling a mental illness. Those who are considering this type of trust for a loved one likely have a number of questions about this legal tool.
Having a basic understanding of some of the benefits provided by a special needs trust can help.
Three specific benefits include:
- Benefits those you love. These legal tools are designed to benefit the listed beneficiary. However, the benefits can extend beyond the recipient. The rest of the family can take comfort in the fact that the financial needs of their brother, sister, child, aunt, uncle or other loved one are meet.
- Financial guidance even when you are not around. Trusts provide the creator with a greater level of control than an outright gift or inheritance. The language of this trust can accomplish two things: that the recipient does not lose out on government benefits and that he or she has additional funds to meet his or her needs.
- Tax benefits. If worded correctly, these documents can provide tax savings to the recipient.
It is generally wise to seek legal counsel if interested in a special needs trust. The language used to create these documents will control how the trust functions. Only a well crafted document can achieve these benefits. An attorney experienced with the intricacies of special needs trusts can craft this document on your behalf, better ensuring that the document meets your needs.
