A special needs trust is designed to provide financial support for those with special needs.

Create a special needs trust.

A special needs trust is designed to provide financial support for those with special needs. By placing assets in this type of trust, you can provide for long-term financial needs without jeopardizing their eligibility for programs like Medicaid and Supplemental Security Income (SSI). Proactive planning also allows you to create a type of special needs trust free from repayment obligations for medical assistance services.

Appoint a trustee.

When creating a special needs trust, you will need to appoint a trustee to manage its assets and make distributions to your child or other family member. It’s important to choose someone who is responsible, reliable and experienced in managing finances. You may also want to consider appointing a professional trustee, such as a bank or trust company, to provide additional oversight and expertise.

Consider a trust protector.

Trustees are not infallible; anyone can make mistakes or misunderstand the nuances of your loved one’s circumstances. A trust protector is a third party appointed by the grantor of the trust to oversee the trustee and ensure that the trust is being managed properly. They can remove and replace trustees, modify the trust terms and make other important decisions to protect the beneficiary’s interests. It can be a great way to empower a support network without burdening them with the complexities of being trustee.

Consider a financial plan.

A financial plan can provide useful guidance to help you feel better prepared to meet and track your trust’s short- and long-term objectives and goals. This can be especially important when your time horizon for a plan is likely to extend beyond your own lifetime. A financial plan can also help answer specific questions around benefit planning, life insurance planning, tax planning, Social Security benefit analysis and assessing appropriate investment risk. 

Consider guardianship.

If your child is under the age of 18 or an adult under guardianship, it’s important to consider who will care for them if you no longer can. You may want to consider appointing a guardian in your estate plan to ensure that your child's needs are met.

Communicate with other family members. 

You should discuss your wishes and your estate plan with siblings, relatives and friends who may also be involved in caring for your loved one with special needs. This can help ensure that everyone is on the same page and can work together to provide the best possible scenario.

Creating a special needs trust plan requires careful planning, consideration and communication. By working with an experienced estate planning attorney and taking the time to develop a trust that considers all of the unique requirements and circumstances involved, you can create a complete plan that ensures your family member’s long-term financial security and well-being.