Parents are always looking out for the welfare of their children. That still applies when their children have grown into adults. Arkansas parents who have special needs children may be even more conscious of those needs when they’re planning their estates. Trusts can be particularly beneficial in these instances.
A Special Needs Trust will ensure that a special needs loved one is looked after when parents or guardians are unable to do so. Such a trust will also protect any government benefits like Medicaid or Supplemental Security Income, which stipulate that a person cannot have more than $2,000 in assets to qualify. Putting assets into a trust will ensure the person with special needs will have enough support during his or her lifetime.
A Special Needs Trust is usually started by a parent or grandparent and funded by the same. They are different from Pooled Disability Trusts, which are actually funded by the person with the disability and are started and overseen by a nonprofit corporation in the same month the person received the funds for them to be protected. This type of trust must reimburse Medicaid should the special needs person pass away.
An estate planning attorney in Arkansas may be able to provide guidance when it comes to what type of trusts would be better suited for his or her clients’ needs. Regulations accompanying trusts are changeable and can be complex. An attorney will be aware of any changes and can advise his or her clients accordingly.