A special needs trust is a crucial tool that allows parents and other caregivers to provide structured financial support for a loved one with special needs. People often use significant assets to fund a special needs trust while simultaneously restricting how the beneficiary can use those assets.
If the assets are well managed, there might be a substantial balance left in the trust when the beneficiary eventually dies. That’s why you should plan for the dissolution of the trust the use of those resources when creating the trust.
Resources can go to other family members or to charity
One of the greatest benefits of creating a trust is the ability to maintain control over assets even after you die. You can also put rules in place for handling those assets after the primary beneficiary dies.
You may want to liquidate the assets and distribute them to other remaining heirs or have those funds go directly to a charity or scholarship fund. What’s important is that you think about how you like those funds used before you even create the trust.
Proper limitations can ensure a lifetime of support
If you have substantial assets to use to fund a trust, you might feel tempted to place fewer restrictions on the use of those assets. However, if you aren’t careful when you set up the trust, you could cut your loved one off from other financial support, like government benefits. A large inheritance or access to trust assets might also put your loved one at greater risk for financial abuse.
An experienced estate planning attorney can help you develop a special needs trust that will help care for a loved one when you’re no longer around to do so.