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Special Needs Trusts

 Posted on April 28, 2013 in Estate Planning

Estate planning is very important for every adult in America, but especially so for parents of disabled children. If you are in this situation, you must first be sure that your child's needs are met throughout his or her life even after you are no longer able to care for him or her. You most likely also want to save some of your wealth for your children without special needs too though. In order to do this, you can create a "special needs trust." This trust will create public assistance to your disabled child.

Specials needs trusts supply money to the disabled child fir travel, recreation, education, medical expenses and rehabilitation, which are not covered by public assistance. The trust is written so that the person named as the trustee is only able to use the assets and money in the trust for benefits available for the disabled child. If, however, the trust funds are able to be used as prime means of support, the disabled child may not be eligible for forms of public assistance such as Medicaid.

Parents that are considering special needs trusts should also be aware that some state have laws that exclude the assets that are included in the trust when determining benefit eligibility. Parent should also be sure that the special needs trust is coordinated with the parents' entire estate plan as well. These trusts can be set up while the parents are still alive or through the parents' will.

Because of the many restrictions on the use of trust funds, the tax law does not include special needs trusts in the list of gifts of future interest.

There are many complicated laws involved in trusts, such as a special needs trust. If you are considering creating a special needs trust or another type, contact an estate planning attorney for assistance. Stock, Carlson & Asso. LLC attorneys can help you create a trust in Wheaton, Ill. today.

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