Caring for your loved one with special needs requires careful planning to provide sustainable support. As the primary caretaker, one of your biggest concerns is who will take over the responsibility of caring for your family member after you pass away.
Implementing a special needs trust is an excellent way for you to preserve financial resources for the purpose of providing for a disabled family member.
Identifying a need
While the decision to get a special needs trust is a personal one, taking the time to assess your loved one’s condition can help you feel more confident about your choice to incorporate one as part of your estate plan. According to Policygenius, your loved one may benefit from a special needs trust if the following circumstances apply:
- Incapable of managing personal finances
- Qualifies for Medicaid
- Qualifies for Supplemental Security Income (SSI)
The funds stored in a trust can help cover the costs of caring for your loved one including food, transportation, housing, medical treatments and insurance needs among other things.
Maintaining some control
You know the type of treatment your family member needs. You know his or her preferences. You know the things that add value, purpose and contentment to your loved one’s life. A trust gives you the chance to establish guidelines and boundaries to sustain the financial well-being of your disabled family member.
The person you appoint to oversee the trust maintains the responsibility of delegating funds to cover expenses, but only under the restrictions you put in place prior to your death. Having a special needs trust reduces the risks of caretakers misusing the financial reserve you saved for your disabled family member.