Creating an estate plan will provide many benefits for you and your Maryland family. With a carefully crafted strategy protecting your interests, you can look to the future with confidence and peace of mind. To get to this point, however, it is essential you implement the appropriate tools that will provide you with the most control over your wealth, health care and assets long-term. You worked hard to build wealth, and you have the right to say what will happen to it in the future.
One of your main goals for your estate plan could be to create a plan that allows you to care for your kids, grandkids or other loved ones well into the future. If you have a loved one who cannot care for himself or herself, you may consider the benefits of establishing a special needs trust. This is an estate planning tool that allows you to set aside and protect wealth for the specific needs he or she may need after you pass away.
Important facts about a special needs trust
A special needs trust can provide financial support for someone who will not be able to work and meet specific needs due to a physical or mental disability. One person or trusted party, called the trustee, will manage the trust and its funds on behalf of the beneficiary. If you are unfamiliar with this specific tool, the following facts about special needs trusts may be helpful to you:
- Funds from a special needs trust will not affect one’s eligibility for certain types of government benefits.
- This type of trust can be a way to protect a settlement on behalf of a severely injured individual.
- The funds from a special needs trust can be for specific needs, such as housing, food or clothing.
It is critical to have a trusted individual as the trustee, as this person or party will oversee the management and distribution of trust assets.
Is it right for you?
You may not be sure if a special needs trust is the right addition to your estate plan. If you are unsure, it may be helpful to seek an assessment of your current estate plan and long-term needs. It is possible a trust can provide you with the ability to care for and support a loved one long after you are gone, giving your family peace of mind.