Special Needs Trust

[minkydog]

We finally did it. Our DS is turning 13 next week so today we set up the Special Needs Trust for our son. Christian is severely mentally handicapped & autistic. He will never live unsupervised or in any way care for himself. Therefore it is imperative that we set aside funds for his maintenance so that our other two children will not have the added burden of taking care of him when we are gone.

The Special Needs Trust is a special account which protects money that is only used for the person for whom it is funded. For people like Christian who will be on SSI & Medicaid, it is especially important that they not be allowed to accumulate assets as they can jeopardize their benefits or even lose those benefits until the money is spent down. The Trust is not accessible by Christian, but we the parents can spend it on things for him, like camp, dental work, braces, clothes, etc. Of course, it requires meticulous record-keeping so there is not even a whiff of fraud.

So, anyway, we did it! What a relief! It only has about $200 in it right now, but in time it will grow. Too bad Christian didn't much appreciate having to go to the bank and be good for an hour. It is a beautiful day and he'd much rather be at the park That's okay. Someday he'll be glad we did this (or as least his siblings will )

 

[barkley]

i agree, very important to have. also important if a parent intends to leave a child in this situation anything via their will. if properly structured, along with a will or living trust being properly structured/worded the funds can benefit the child as intended.

 

[SandrainNC]

Good for you! We have it written in our wills to be set up. Actually, we have one trust already set up for a settlement that he was involved in which won't start paying out until he is 18 - the money went into an annuity. But that one is different (if anything ever happens to him the government will take that money because it was from a legal settlement). Our wills set up the regular one right now and use our bank accounts to fill it. When he gets a little older we will probably change the wills and go ahead and set up that second trust and bank account and put some money into the account.

I wish this stuff wasn't so confusing and difficult.

Sandra

 

[minkydog]

Good for you! We have it written in our wills to be set up. Actually, we have one trust already set up for a settlement that he was involved in which won't start paying out until he is 18 - the money went into an annuity. But that one is different (if anything ever happens to him the government will take that money because it was from a legal settlement). Our wills set up the regular one right now and use our bank accounts to fill it. When he gets a little older we will probably change the wills and go ahead and set up that second trust and bank account and put some money into the account.

I wish this stuff wasn't so confusing and difficult.

Sandra

<sigh> I know the feeling. I wish our son didn't require it, but I'm glad there is a way for us to provide for him. Christian requires a lot of care and I would hate for my other kids to be forced to "inherit" him. They love him dearly, but I would hate for them be resentful of him because his care caused them hardship as young adults.