If a child, grandchild or other family member has special needs, it could be worthwhile to create a special needs trust. Doing so may make it easier for a disabled beneficiary to retain assets while also remaining eligible for state or federal programs available to New Hampshire residents.
One of the primary benefits of creating a trust of any kind is that assets held inside of it can be overseen by a responsible friend, family member or professional. If a special needs individual isn’t capable of managing his or her own finances, the trustee can step in and do so on that person’s behalf. It may be a good idea to appoint a successor trustee in the event that the first choice is unwilling or unable to serve in that role for any reason.
Assets that are held inside of a trust are generally shielded from creditor claims. Furthermore, they are typically not subject to state property division laws. This can be ideal for those who are thinking about ending their marriages but don’t want to lose money or other resources needed to treat their health conditions.
Special needs trusts can also be helpful for custodial parents of children who are disabled. This is because placing child support payments inside of a trust means that it won’t be counted as income when determining eligibility for government programs.
Taking time to create a thorough estate plan might ensure that loved ones are taken care when a person is no longer able to do so. An estate planning attorney may be able to help a client determine if a special needs or other type of trust might be worth adding.