Assets and Trusts

Self-Funded Special Needs Trusts

What is a Self-Funded Special Needs Trust?

A trust is a legal document that provides for the control and distribution of assets held by a "trustee" for the benefit of another (the "beneficiary"). The assets in a trust may be money, stocks, bonds, real estate, business interests, or other possessions or assets. A trust should provide how assets are to be managed and distributed during the beneficiary’s life, and also how they are to be distributed after that person’s death.

Navigating Types of Special Needs Trusts

Special needs trusts generally fall into one of two categories, and the treatment and effect of any given trust varies depending on which kind of trust is involved. This has led to a tremendous amount of confusion and, in some cases, a significant loss of assets. Many (but not all) practitioners use the same language to describe the distinction: a types of special needs trust is either a "self-settled" or a "third-party" trust.

What is a Special Needs Trust Fund?

Many families of children with special needs make the common mistake of not setting up a trust fund.  The families think that there is no need to since they are still healthy and young, or they think it may be a waste since they do not have a lot of money saved up.  Both of these reasons are harmful excuses for not setting up a special needs trust fund.

What is a Living Revocable Trust?

No one likes to think about the circumstances that can take their life, especially when they have young children at home.  Sadly, situations can occur, and if the proper procedures are not taken while you were still alive, it can cause a lot of grief and even harm to your children after you are gone.  This idea is especially true if you have a child with special needs. 

Types of Special Needs Trust Funds

The whole purpose of a special needs trust fund, which can also be referred to as a supplemental needs trust, is to provide financial support for a disabled person without disqualifying them from receiving government assistance.  Trust funds are usually set up as an inheritance, but depending on the type of trust fund, can also be used while the disabled person’s parents or caregivers are still alive.

Setting Up a Special Needs Trust Fund

Life is unpredictable, especially if you are a parent of a child with special needs.  The one thing that should not be unpredictable is what would happen to your child if anything were to happen to you.  Making the proper plans now by setting up a trust fund can secure your child what he needs in the case of unlikely circumstances.  Parents of a child with special needs need a trust fund, regardless of their age or wealth.

Appointing a Trustee for Your Trust Fund

Appointing a Trustee for Your Special Needs Trust Fund