Having a child with special needs can mean making different plans at times. As Arkansas parents better understand the needs of their children throughout the years, they may come to realize that their children may need assistance well into their adult years. It is common for parents to want to ensure that their children will be taken care of even after the parents’ passing, but providing funds directly can be tricky. Fortunately, special needs trusts can help.
This type of trust can be helpful because it allows parents, or other loved ones, to leave assets to a special needs person without potentially jeopardizing any government benefits. Because these benefits are often based on financial details of the recipient, if a special needs person inherits money, it could potentially disqualify him or her from government benefits. However, by placing the assets in a trust, the person does not directly receive a windfall.
If setting up this type of trust seems like a good idea, individuals will need to choose a trusted person to act as the trustee. This person will manage the assets and distribute them as indicated in the terms. Next, the terms of the trust will need to be drafted, the final copy signed and notarized, and the trust opened. It is also important that the trust is funded with assets, otherwise it is essentially useless.
Setting up special needs trusts may be a valuable planning step that could benefit numerous Arkansas families. If they are interested in gaining more information on this planning tool, they may want to consult with knowledgeable attorneys. These legal professionals can explain the uses and benefits of this option.