If you have a loved one, such as a child with special needs, who may need considerable support after your passing, most likely you have wondered how they will get on after your death. Establishing a special needs trust in Nevada is one way to ensure an income for such individuals without adversely affecting any governmental assistance they may receive.
What is a special needs trust?
Also known as a supplemental needs trust, a special needs trust is an estate planning tool that allows an individual with a disability or functional needs to receive financial support without affecting Medicaid or Supplemental Security Income. Adults with special needs who receive such needs-based benefits could be disqualified from receiving them if their income goes above a specified level. Providing an income from a special needs trust will allow your loved one to pay for living expenses while still receiving government benefits. Assets placed in a special needs trust may be used to pay for expenses that are not covered by U.S. government assistance programs.
Other benefits include:
• Creditors or lawsuit plaintiffs cannot access the funds
• A trustee or financial advisor can I vest the trust funds
• Trust funds guard against financial abuse
What type of special needs trust is best for me?
As there are several types of special needs trust, you may be unsure which one is right for your situation. Determining your estate planning goals is an excellent way to decide which type of trust will benefit everyone involved.
When determining your plan, you can choose from among third-party stand-alone or testamentary trusts, first-party special needs trusts or pooled trusts, which can either be third-party or first-party documents. Every special needs situation is different, so make sure you thoroughly review your options before deciding on one.