Alternatives to a Special Needs Trust

Jul 20, 2011  /  By: Kevin Pillion, Estate Planning Attorney  /  Category: Special Needs Planning

If you have a loved one with special needs, you’ve probably discussed the use of a special needs trust, when creating your estate plan.  This can be a beneficial way to leave assets for the care of your loved one.  It’s important to note that this isn’t the only way to make sure that your loved one is cared for. While you don’t usually want to leave money to your loved one outright, you don’t have to use a special needs trust.  Take a look at some of the information below, to better understand your options.  If you have any questions about the use of a special needs trust or other planning tools, contact an estate planning attorney.

 

Some people choose to use other methods when leaving money to a loved one with special needs.  Another option to consider is leaving assets to another trusted loved one.  This is a great option if you don’t plan on leaving a large amount of money.  By leaving money to a trusted helper, you will not be harming your loved one’s ability to get government benefits.

 

If you choose this option, it’s important to select a trusted helper who is responsible, loving, reliable, and honest.  This will ensure that the assets are used to benefit your loved one.  It’s a good idea to select someone who is also close to your loved one.
If your loved one doesn’t qualify or take advantage of government benefits, you may also choose to leave money outright if it is a small sum.  This is not an option that is suggested, but it can be done.  Carefully consider this option before deciding not to create a special needs trust.

 

Again, if your loved one is not on governmental assistance, a life time trust share created in your own revocable living trust is the best way to pass along assets.

 

If you have any questions about the use of a special needs trust or any other method, consult with a qualified estate planning attorney.

Co-Executor, PLLC is a member of the American Academy of Estate Planning Attorneys.

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