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Can I Use a Trust to Support a Disabled Child?

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By Anaya Taylor
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Can I use a trust to support a disabled child

There are several ways to support a disabled child, including putting money into a trust. This way, you can protect your child’s inheritance while still ensuring that the money goes where it is needed. Another option is to disinherit the child altogether and increase the share of a trusted family member who will use it for the disabled child’s benefit. However, this option is riskier because you can’t be sure that the heir will use it correctly, and he or she could lose it through bankruptcy or a civil lawsuit.

Another option is to set up a special needs trust. A special needs trust limits a disabled child’s inheritance to the amount needed to help him or her meet his or her needs, so that they can qualify for government assistance. It also ensures that a trusted trustee manages the child’s assets. This option is ideal for disabled children, who often cannot handle money themselves.

While it may be tempting to try and solve this problem on your own, a lawyer’s help is essential to ensure that you make the best decisions for your child. If you have a child who is disabled, you don’t want to take any chances. An estate planning attorney can ensure that you have a comprehensive plan in place and are not leaving anything to chance.

A trust can help with medical expenses. A special needs trust can qualify for Medicaid, which can save hundreds of thousands of dollars. However, you must limit the distributions to the amount allowed under Medicaid. If you plan to use the trust for Medicaid, make sure the trustee is not the beneficiary. You should also make sure the trust is set up as a gift.

Another option is to set up a special needs trust (SNT). A SNT is a third-party trust, funded by interested parties. These trusts can help you support a disabled child or other family member. Having a trust is a great way to save money for your disabled loved one. You may be able to use it to supplement government benefits while maintaining eligibility for Medicaid.

When used correctly, a special needs trust can be a great resource for disabled children. The right trust can improve the quality of life for a disabled child and protect them from public assistance programs. You can discuss your needs with your attorney to decide if a Special Needs Trust will be right for your family.

You may also choose to name a successor to administer the trust. The successor will be responsible for taking care of the funds once you die. Typically, a parent is the trustee while a child is alive. Identifying a successor is a crucial part of a trust and should be well thought out. In some cases, a sibling is the most appropriate choice.

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