Families with a special needs child know the unique care and planning requirements required to ensure their child’s needs are met. A Special Needs Trust (SNT) is a powerful legal instrument that holds assets for a person with special needs without jeopardizing their participation in government assistance programs, like Medicaid or Supplemental Security Income.
When a family learns that their child has a disability that will require long-term care, one of the first questions that arises is when the special needs trust should be established. In most cases, the answer is as soon as possible. Keep reading below to learn more from our Oklahoma City special needs trust attorneys about when you should establish a special needs trust.
Benefits of a Special Needs Trust
If you have a child with a disability, a special needs trust can be a crucial part of your estate plan. A special needs trust offers many advantages, such as:
- Financial Support: Assistance programs may provide financial support, but it is often not enough to provide the care your child may need. A special needs trust can be a great way to pay for expenses not covered by assistance programs, such as personal care attendants or recreational activities.
- Protection of Assistance Programs: Your financial position can have a big impact on your child’s ability to participate in assistance programs, like Medicaid or SSI. A special needs trust can provide financial support while maintaining your child’s eligibility for these important programs.
- Flexibility: A special needs trust can give your trustee the flexibility to manage and distribute assets to care for the evolving needs of your child.
Setting up a special needs trust can be a great way to ensure that your loved one’s needs are met even after you are no longer able to meet them on your own. A knowledgeable special needs trust lawyer can help you understand these benefits and determine whether a special needs trust is the right choice for your family.
Choosing the Right Time to Establish a Special Needs Trust
Many parents wait until their child turns 18 or reaches adulthood to set up a special needs trust for them. However, waiting might not always be the best decision. In most cases, the best time to set up a special needs trust is as soon as your loved one’s disability is diagnosed. Setting things up early can provide several benefits:
Peace of Mind
First, it gives you peace of mind knowing that you have a plan in place and that your child or loved one will be cared for no matter what happens. It allows you to make decisions, like naming an executor, on your own time instead of scrambling to do so quickly in an emergency situation. Working with a special needs trust attorney early on can help ensure that these decisions are made carefully and with your family's long-term needs in mind.
Protect Gifts or Inheritance
Next, the trust can provide a way to protect future gifts or inheritances. Instead of having family members give or leave assets directly to the child, they should leave them to the trust instead. This can help provide long-term financial stability to your child, ensuring that they have the necessary financial support to receive the care that they deserve for the rest of their lifetime.
Ensure Your Special Needs Trust Is Regularly Updated
One thing to keep in mind is that you should ensure your trust documents stay up-to-date. Evolving care needs, changes in your financial situation, or other major life events could necessitate a change to your trust. Working with an experienced Oklahoma City special needs trust lawyer can help ensure that you establish a special needs trust at the right time and keep it updated to meet your family’s needs.
Contact Helton Law Firm today to schedule a consultation with a special needs trust attorney and take the first step toward securing your loved one's future.