Protecting your loved ones after you have passed away is a worry many people have, especially those who have children with special needs. An excellent way to make sure your children are properly taken care of when you are gone is by creating a special needs trust. Today, we will answer the question how does a trust protect my loved ones?
If your loved one receives government benefits, such as Supplemental Security Income (SSI), you cannot leave them an inheritance in your will totaling $2,000 or more or it can impact their benefits. Instead, you can make sure your loved one is provided for by creating a trust. The trust will hold the assets, not your loved one, which means they can still receive their benefits.
You can also assign a trustee to maintain the trust in your absence. If you do not want to manage the trust, or want someone in place prior to your death, be sure to pick someone you trust. The trustee will be required to see that the assets are used for how you intended and will be responsible for investing the assets appropriately.
A special needs trust can also receive contributions from others who want to help provide for your child. Contributions of $30,000 annually for married couples and $15,000 annually for individuals can be made without tax implications.
A special needs trust is a legal option you have to provide for your children after your death. It allows you to move assets to them without facing tax implications and without your child losing any government benefits he or she receives.