If you are a Pennsylvania resident who has a child, spouse or other loved one living with a disability; you may want to ensure they are safe and taken care of after you pass on. One of the most effective ways to do this is to set up a trust for him or her. At the Law Office of Margaret S. Phiambolis, we often assist clients with trusts, wills and other financial instruments as part of an estate plan.
Her Wealth reports that a special needs trust can protect and hold assets for disabled beneficiaries. It can receive assets via an estate plan, legal settlements and other sources. Many people establish them so that the inheritance or life insurance proceeds pass to their heirs. The language used can specify the intent of the funds contained within.
Trusts allow you to ensure your wealth goes to the disabled family member without endangering his or her government support. Medicaid, Supplemental Security Income, subsidized housing and job training have income restrictions. If you leave assets to your disabled loved one that exceeds $2,000 in your will, they may lose access to government assistance programs and disrupt their current stable income.
Even if your beneficiary does not qualify for government programs, a special needs trust can protect assets in the event of a divorce or civil suit. This supplemental trust can receive court-ordered child support as part of a divorce settlement if you have a disabled child.
You can appoint an administrator to oversee the trust. He or she will manage asset distribution, investment and spending decisions. Rules for trusts are complex and may vary based on your situation. An experienced attorney can help you set up the trust correctly and ensure the correct distribution of assets. Visit our webpage for more information on this topic.