Special Parent Coach

Established with the beneficiary's own assets, these are useful for inheritances or settlements but include a state payback provision.

Third-Party Special Needs Trusts:
Funded by someone other than the beneficiary without a payback provision, making it ideal for family estate planning.

Pooled Trusts:
Managed by nonprofit organizations to pool and manage assets from multiple beneficiaries while maintaining individual accounts for each.

3. Special Needs Trusts Preserve Eligibility for Government Benefits
A vital function of an SNT is to maintain your child’s eligibility for government programs by not counting the trust assets against the limits for means-tested benefits. This ensures ongoing access to essential support services without financial penalties.

4. Special Needs Trusts Offer Flexibility and Can Be Tailored to Your Child's Needs
These trusts allow for significant personalization, enabling you to dictate how funds are utilized to support your child's specific needs, from healthcare and education to personal care and leisure activities, thereby enhancing their life quality.

5. Selecting the Right Trustee Is Crucial for the Trust’s Success
The choice of trustee, whether a family member, a trusted friend, or a professional, is crucial. The trustee should be responsible, financially savvy, and understand your child’s needs to effectively manage the trust’s assets and distributions.

6. Determining How to Fund the Trust Is Essential for Long-Term Support
The trust's funding can come from a variety of sources, including savings, investments, life insurance policies, and real estate. Thoughtful planning is necessary to ensure the trust is sufficiently resourced to meet your child's ongoing and future needs.

7. Regular Reviews and Professional Consultation Are Key to Trust Management
Laws and policies related to special needs trusts and government benefits are subject to change. It’s important to regularly review your trust and stay updated on legal developments. Consulting with professionals who specialize in special needs planning is critical for setting up and managing the trust to best serve your child’s changing needs over time.

A special needs trust is an invaluable tool in securing the financial and care needs of a child with disabilities, providing a strategic method to offer support without compromising critical benefit access. By understanding the various trusts available, their advantages, and key management considerations, you can make informed decisions that ensure your child’s long-term welfare and happiness. Engaging with professionals experienced in special needs planning is crucial to navigate this complex but crucial aspect of future planning effectively.

Dr. Kimberly