When exploring the various estate planning options, Maryland parents who have special-needs children may have particular concerns. Luckily, there are avenues these parents may utilize to help them ensure that their children continue to receive the proper care while still gaining their inheritances. If parents are facing such concerns, they may wish to look into a supplemental needs trust.
This type of trust could be particularly useful for multiple reasons. First, the assets in the trust are managed by the appointed trustee. Because a new guardian is often named for special-needs individuals, it is like that the appointed trustee could be that guardian. The individual or individuals can distribute the assets as they see fit and in the manner that is best for the inheritor.
Putting an inheritance into a supplemental trust could also help avoid potential complications relating to government benefits used for care. Benefits are often determined based on an individual's income and assets, and therefore, if a person receives a considerable inheritance all at once, he or she could possibly lose the benefits for a time. By keeping the inheritance under the management of the trustee and having it distributed over time, an individual may be less likely lose needed benefits.
This type of trust may be useful to parents in other ways as well. Therefore, interested Maryland parents may wish to find out more information on a supplemental needs trust and whether it could be right for their situations. If they would like more insight for their particular estate plans, they may wish to consult with an experienced estate planning lawyer.
Source: The Wall Street Journal, "Estate Planning When You Have a Special-Needs Child", Henry E. Klosowski, March 27, 2016