Special Needs Trust Lawyer
A special needs trust is a type of trust that manages assets for someone with a disability. If you are the parent of a disabled a child, you may consider creating this estate planning document. It will allow your child to receive your assets and still get government benefits. However, some parents make costly mistakes when establishing a special needs trust.
Here are a few common mistakes to avoid when setting up a special needs trust.
Appointing an Inexperienced Trustee
The trustee is the person who will manage your child’s special needs trust and distribute funds accordingly. Since special needs trusts can be especially complex, it is not advisable to appoint an inexperienced trustee. Some people make the mistake of naming a family member as trustee, even if the person does not have any knowledge or experience with these trusts. It is essential to appoint a trustee with extensive knowledge of public benefit laws.
Waiting Too Long to Create a Special Needs Trust
If you are relatively young and healthy, it is easy to put off setting up a special needs fund. You may assume that you will be around for many more years and a special needs trust can wait. However, no one knows the future. You never know if you will get into a serious accident or develop an illness. If you should die unexpectedly, you want your child to be provided for financially. As such, you should consult a lawyer about creating a trust as soon as possible. It is never too early to do so.
Not Making the Trust Irrevocable
When drafting a special needs trust, you need to make sure that it is irrevocable. If the document is revocable, the assets will be available to the disabled person, which will cause him or her to lose government benefits.
Going the DIY Route
It is possible to draft a special needs fund online, and some people may go that route to save money. However, it is not in your best interest to do this. Special needs trust are very complex estate planning documents. If you try to draft one on your own, you could make costly mistakes. It’s worth the extra cost to hire an experienced lawyer.
Thinking Special Needs Trusts Are Only for Minor Children
At first, you might assume that special needs trusts are just designed for minor children with disabilities. However, you can also create a special needs trust for adults. If your child, for example, became disabled as an adult, you can still set up a special needs trust for him or her. This way, you will have a peace of mind knowing that your child will be taken care of if you should die unexpectedly.