As the parent of a special needs child in Colorado, you may be pondering how you can see to his or her welfare and provide for them if they happen to outlive you. One of the most important things you can do for your kid to protect them and to maintain their quality of life is to plan for their future with a special needs trust.
According to U.S. News & World Report, special needs trusts, also known as supplemental needs trusts are great estate planning tools. When creating a special needs trust, you should consider who will be managing the trust, the nature of your child’s disability, if a family member will be acting as the trustee of the trust, and if your child will qualify for public assistance. Other factors to consider include whether there is a settlement from a lawsuit or life insurance policy and the kind of care your kid will require.
The trust should be structured so that it provides financial support for your child. It must be approved by the court and be constructed so that it meets state and federal regulations. By establishing a special needs trust in place of an inheritance, your child is able to benefit from the proceeds of the trust without fear of being disqualified from government programs and benefits, such as Medicaid and Social Security Income.
Special needs trusts can be quite complex. However, with the right preparations and provisions, the funds can ensure that your child is financially secure for the rest of his or her life. This information is only intended as educational material and should not be used as legal advice.