What is a Special Needs Trust?
By Hightower Great Lakes on April 23, 2024
As a parent, it’s perfectly natural to worry about your children’s futures… and what will happen to them when you’re no longer around to protect them.
But when you’re the parent of a child with special needs, it adds even more stress and worry.
I have this concern myself.
I addressed it with a Special Needs Trust in our estate plan – and over the last 35 years as an advisor, I’ve worked with dozens of clients to help them do the same.
Here’s what you need to know about Special Needs Trusts:
If not handled appropriately, your child’s inheritance could stand to disqualify them from receiving needs-based government benefits and may impact their ability to get basic financial support or medical care.
That’s why they require careful consideration during the estate planning process.
And it’s why Congress created an exemption called the “Third-Party Special Needs Trust” – so that the beneficiaries wouldn’t be penalized from receiving government support.
The trust is set up by someone other than the individual with the special needs, like parents.
Assets can also come from other family members or friends, just not from the individual.
The money can be used for:
- Clothing
- Transportation
- Entertainment
- Travel & Recreation
- Uncovered medical treatments, and
- Gaps in government benefit coverage
If you have a child or other beneficiary with special needs, reach out to me and I can help you navigate this process.
Helping clients organize their financial lives as part of their plan to reach Financial Independence… is what we do.
Helping to make sure they can take great care of their families – is just who we are.
Hightower Great Lakes is a group of investment professionals registered with Hightower Securities, LLC, member FINRA and SIPC, and with Hightower Advisors, LLC, a registered investment advisor with the SEC. Securities are offered through Hightower Securities, LLC; advisory services are offered through Hightower Advisors, LLC.
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