Protect The Future Of Your Special Needs Adult Child With A Trust

When you have a special needs adult child, planning for the future can take some creativity. If they are receiving benefits from the government and insurance based on income, knowing where you can put money you have saved to protect your disabled child is vital. If your child inherits money from you directly, they can end up losing benefits and services that are in place. If they live in a nursing facility, their housing can be at risk. A disabled adult who inherits money will end up spending the inheritance quickly because of lost benefits, insurance, and housing. When you intend the inheritance to be for supplemental care, you have to set up a special needs trust.

Why a Supplemental Needs Trust Matters

Anyone who is on disability and being cared for in a nursing home gets less than a hundred dollars a month for their personal needs. If you want to leave your disabled child money for clothing, for visitors, or to go on vacation, you can do so through a supplemental needs trust. It must be clear that the money can be used to enhance or improve the life of your disabled child, and that it is not meant to replace any existing services that are in place.

Access to the Special Needs Trust

You will have to name a trustee who will oversee how the special needs trust is spent. Be clear about the parameters of the trust, and consider who will have access to the funds. If you have another child who is also an adult and able bodied, you might name them as the trustee or as an individual who can access the money. Let your attorney know why you want to save the money, and the trust will reflect how the money can be used for your disabled child.

Protect Services Already in Place

If your disabled child is receiving physical therapy, nursing care, or other services, keep those services in place by setting up a special needs trust. Inheriting money will cause your child to lose their health insurance, which will have a direct impact on the services they are currently receiving. The mess of trying to get insurance and spending down the inheritance before getting services again is overwhelming.

When you have a disabled child, a special needs trust allows you to leave money for their supplemental care needs instead of leaving them a cash inheritance.