Special Needs Financial Planning in Ohio
Gifting funds or an inheritance might disqualify your relative from certain government programs, if not done properly. A special needs trust may be needed for a person suffering from a disability.

November 03, 2011 /24-7PressRelease/ -- Special Needs Financial Planning in Ohio

Families with a special needs child must consider additional factors when creating an estate plan. Gifting funds or an inheritance might disqualify your relative from certain government programs, if not done properly. A special needs trust may be appropriate in many circumstances.

As government budgets are increasingly strained, many families have concerns that the resources for special needs individuals may disappear. In 2011, the MetLife Center for Special Needs Planning conducted a survey to find out whether caregivers of special needs children have appropriate estate plans. The study found that only 21 percent of caregivers have a special needs trust for their child; however, the majority of caregivers were concerned about providing lifetime care for children with special needs.

Why Should You Create a Special Needs Trust?

Government programs can be affected if the disabled person has too many personal assets. A special needs trust allows a disabled individual to receive gifts from relatives, lawsuit settlements or inheritance without losing eligibility for various government programs. Special needs trusts are treated differently and not counted as assets.

Most special needs trusts are usually created by a parent, grandparent or another family member. However, a special needs trust may be set up by the disabled individual in situations where his or her disability was caused by an accident or medical malpractice and lawsuit proceeds are obtained.

Planners with clients who have special needs family members may sometimes feel overwhelmed by the complexities of providing for their future. Or they may make errors in provisions designed to protect a special needs client that can cost the family--and the planner, too--down the road.

What Does a Special Needs Trust Cover?

The funds in a special needs trust do not provide basic support, but may pay for comforts not covered by public assistance funds. A special needs trust could pay for a specially equipped van, transportation, educations and counseling, vacations and cultural events, and many other life enhancing endeavors.

Selecting a Trustee

The process of selecting a trustee must be done carefully. While parents, guardians or other members of the family may want to take on the responsibility, it may not be allowed. These individuals may be beneficiaries of any money remaining in the trust upon the disabled individual's death and a conflict of interest might develop.

An estate and trust planning attorney can answer your questions about special needs trusts. Your situation is unique and an attorney in your city will be able to help you decide whether a special needs trust should be set up to provide lifetime care for your child.

Press Release Contact Information:

FL Web Advantage