It is common for New York parents with children who have special needs to worry about their future care. It is unfortunate but true that parents will not be around forever, and it is understandable that they want to plan ahead to address the care their kids may need. Luckily, estate planning can help with the endeavor.
In particular, parents often want to provide financial support for their kids. However, simply gifting them assets or allowing them to inherit property after their parents’ deaths can jeopardize eligibility for certain government benefits. This is where special needs trusts come in. These accounts can hold assets that can go toward the support of special needs children in the manner the parents see fit without directly giving the funds to the children.
Even if a special needs child is not receiving government benefits, a special needs trust could still help protect assets. Having assets separate from the estate means that they are protected in the event that the beneficiary is sued by creditors or if he or she goes through divorce. This trust could also receive child support payments if ordered by the court to ensure that the funds are used for the special needs child’s care.
Special needs trusts can be beneficial for a number of purposes. If New York parents are interested in setting up this type of fund for their children, they may want to gain more information on this estate planning option. Consulting with legal professionals could better ensure that the proper steps are taken to create this type of fund.