Families can be complicated, and the individual needs of family members or other beneficiaries may be just as complicated. This means that each family may have specific and very different needs as they move forward with the estate planning process. For some Michigan families, the creation of a trust, specifically a special needs trust, may be a viable option for overseeing the care of a loved one.
A trust is essentially funds set aside for distribution to a beneficiary, based on specific directions or stipulations. The trust is overseen by a party who has been designated to release and manage the funds according to the wishes of the grantor. A special needs trust is a specific type of trust that ensures a loved one with special needs is cared for according to the wishes of the person leaving the funds behind.
There can be all sorts of scenarios that lead to the need for a special needs trust. If an adult child has an impairment or medical condition that makes it difficult or impossible for them to care for themselves, a trust can provide that support. Also, if a special needs adult receives government benefits for care and support, simply leaving funds to that individual can result in a loss of those funds. However, a trust will ensure that those benefits are not altered.
The details of how to leave assets and funds to beneficiaries can be confusing and complicated, depending on the situation. Clarification is needed to help individuals make the most out of estate planning. If you or a loved one thinks a special needs trust may be the best option, our website can further explain how one works and how legal help in Michigan can ensure comprehensive and individualized estate planning.
Source: gallowaycollens.com, “Wayne County SNT (Special Needs Trusts) Lawyers“, , Sept. 8, 2014