As a parent, you always worry about the safety and well-being of your children. However, if your child has special needs, your worries tend to increase. How will he or she take care of themselves in the future? Will he/she be able to financially support themselves?
If you are worried about the financial future of your special needs child, there is a way that you can ensure his or her security; by setting up a trust fund. A trust fund will allow you to set aside money for your child to ensure their financial well-being as he/she ages.
A ‘special needs trust’ is a way to provide your child with money without impeding his chances of receiving supplemental financial benefits from the government.
If you are interested in setting up a special needs trust fund for your child, here are some very valuable tips and information about the process.
Delegate a Trustee:
Begin the process by selecting a trustee.
This person will manage the money in the trust fund and will distribute it to your child in an appropriate manner. This task is exceptionally important, so you are going to want to choose someone who you trust completely. The trustee can be someone you know, or it can be a financial institution.
Find an Attorney:
You are going to need to employ an attorney who has experience working in this capacity. The attorney will determine and arrange how to properly set up the trust fund. He or she will work with you, and with the trustee, to ensure that your child will receive the proper funding.
Funding the Trust:
There are a number of ways that you can fund your child’s special needs trust. These include:
Property you own
Gifts, inheritance and other forms of financial assistance from family and friends
Cost of Creating a Special Needs Trust:
It is important to remember that there will be a cost associated with setting up this trust for your child. The specific cost will depend on where you live, how much you attorney charges and how involved the trust is. Typically, you can expect to pay a few thousand dollars in order to set up a trust fund for your child.
Ways the Fund can be Used:
There are strict rules and regulations that govern the way in which the money from this trust fund can be used. These rules and regulations help to ensure that the money is being properly used and not mismanaged.
The funds can be used in the following ways, and they can only be used for your child:
Home health aides
Special equipment that your child requires
Health and dental care that are not covered by the government
As a parent, one of your biggest concerns is making sure that your child is taken care of. If you are the parent of a special needs child, one of your biggest concerns may be how your child will be taken care of financially in the future.
By setting up a special needs trust fund, you can ensure that your child has the financial assistance that he or she will need for their future.