Pursuing Peace Of Mind For You And Your Family

How may I add money or property to a special needs trust?

A special needs trust provides a way to name a trustee who may help manage the care and support of a disabled beneficiary. You could add money and property to the trust without affecting a beneficiary’s eligibility for receiving financial or medical assistance from the government.

Forbes reports that when establishing a trust, individuals may fund it while alive or after death. You may, for example, transfer money and property to the SNT during your lifetime. Some insurance companies allow naming trusts as beneficiaries of life insurance policies. This may provide funding without disqualifying beneficiaries from any assistance they rely on.

Instructing trustees to allocate funds to beneficiaries’ needs

With a trust, you may create a plan for a trustee to use life insurance proceeds to assist a beneficiary. Kiplinger’s Personal Finance reports that instructions may outline how trustees use the SNT’s funds to supplement their beneficiaries’ public benefits. Trustees may also distribute money to beneficiaries at specified intervals.

You may instruct that money held in the SNT go toward personal needs such as your beneficiary’s housing or healthcare. By transferring assets to the trust, your trustee may use the SNT’s funding to pay a home’s utilities, insurance and taxes. If your beneficiary needs live-in healthcare, you may leave instructions for a trustee to pay for these services.

Establishing routines for trustees to support beneficiaries

According to the Special Needs Alliance, trustees must know about the public assistance programs supporting beneficiaries. You may instruct a trustee to monitor payments so that it does not result in your beneficiary losing financial support.

Special needs trusts support disabled beneficiaries so that they may thrive; both property and money may transfer to an SNT. Trust documents may also outline a beneficiary’s personal care and financial requirements to provide trustees with guidelines to follow.