A Growing Trend... Special Needs Trusts
A special needs trust (sometimes called a supplemental needs trust) is a specialized legal document designed to benefit an individual who has a disability. This type of trust enables a person under a physical or mental disability, or an individual with a chronic or acquired illness, to have, held in trust for his or her benefit, an unlimited amount of assets.
A special needs trust, according to the law, can be used for "supplemental and extra care over and above what the government provides." It is important to remember that a special needs trust is a living legal document that is meant to not only maintain benefits eligibility, but also to bring enjoyment and new, positive experiences to the beneficiary.
Special needs trusts are becoming the estate planning tool of choice for many parents who wish to leave funds for a special needs child’s benefit after their deaths. Most special needs trusts are created from the parents’ will and funded by life insurance policy death benefits.
Be sure to consult your attorney and tax advisor when considering a special needs trust. Consider appointing a corporate trustee, such as Farmers State Bank, to manage and administer the trust. It is critical that a special needs trust be managed properly to ensure life-long benefits to the beneficiary and preserve family ties without complications and stress.
To learn more about how a trust could enhance financial security for you and your family, arrange to meet with our trust officer, Tammy Fleming, at your convenience. She can be contacted by calling 319-874-4321 or e-mail email@example.com.