Estate planning can be a complex process, especially if you have loved ones with specific needs you wish to address in your estate plan. For some Tennessee individuals, a simple will is sufficient to effectively deal with their estates after their passing, but that may not be the case for you. You may need additional tools to complete your estate plan.
If you have a special needs child or take care of a person who may not be able to care for himself or herself in the future, it may be beneficial to consider a special needs trust. This specific estate planning tool allows you to set aside and protect assets for the care of another person in the future. This could be a prudent choice for the benefit of your loved ones.
The details of drafting a special needs trust
One common mistake many people make when planning for the future care of a special needs loved one is they leave their assets to that individual through a will. While this may seem like a streamlined way to care for all of your beneficiaries in one document, this is not the best approach for a special needs person.
Leaving assets for the care and support of a special needs person through a will can actually impact the beneficiary in negative ways. It can eliminate his or her eligibility for certain government benefits, and it can cause other complications as well. Creating a special needs trust can help you avoid issues and set aside your assets for a specific use. Consider the following facts about this type of trust:
- You can name a trusted family member or other individual to oversee the distribution of trust assets.
- A special needs trust is worded to ensure the assets are specifically used for extra care and supplemental support of a special needs individual.
- This type of trust can ensure a person has what is needed for his or her basic housing, food, medical and clothing needs.
There is significant benefit in seeking experienced guidance as you draft a special needs trust.
Take action today to protect loved ones tomorrow
It is impossible to predict the future, but there are steps to you can take to ensure your loved ones have what they need for a secure future after you are gone. If you believe a special needs trust can help you accomplish your estate planning goals, a complete evaluation of your case can help you understand how to begin.