If you have a child or loved one with special needs, you may be concerned with how to financially take care of them after you pass away. However, it is important to consider that an inheritance is not always a welcome gift. If your loved one receives governmental benefits, receiving an inheritance may prevent them from qualifying for their essential programs. With effective planning, you can establish trusts that benefit your loved one with a disability by supplementing the government benefits they receive.
Supplemental Needs Trusts and Special Needs Trusts are types of trusts established to benefit a loved one with special needs. Both types of trusts are Irrevocable, which means that once they are created, they cannot be changed. If the person with special needs is funding the trust with an inheritance or personal injury settlement, then it is a Special Needs Trust. If a parent or grandparent is funding the trust, then it is a Supplemental Needs Trusts. Both types of trusts can be effective for supplementing the governmental benefits of a loved one with special needs.