What are some elements that go into a special needs trust?

| Sep 4, 2020 | Estate Planning |

A special needs trust can provide instructions in caring for your disabled child’s legal, medical and financial requirements. Whether your beneficiary is a minor or an adult, his or her particular needs determine which elements you need to include. 

In the event of a sudden death or incapacitation, a trusted individual takes over the responsibilities of assisting your child. The initial step in creating a special needs trust involves naming a trustee to carry out your instructions. 

Who could become a trustee?

A friend, relative or professional manager could become your trustee. As reported by Bankrate.com, this individual may need to interact with a team of professionals, such as your child’s social worker and health care practitioners. To ensure your trustee carries out your wishes, your child should find it easy to communicate with your chosen individual. 

What type of legal affairs could a trustee help with?

You may need a trustee capable of signing contracts and representing your child in court. For example, apartment leases and other legal documents require the signature of an individual who understands the contents of the agreement. Your trustee could ensure your child enters into contracts that he or she has the ability to carry out. 

How could a trustee help my child with his or her finances?

If you create a trust with assets, such as property or proceeds from a life insurance policy, your trustee must follow your financial instructions. You may prefer that a trustee pay your child’s expenses from a special needs trust rather than from his or her own checking account. Property that generates revenue could provide an additional source of income, which your trust should describe how to spend or invest.