Some Maryland parents may have children with disabilities. Though these parents undoubtedly love their children immensely, this love may also lead to serious concerns about how their children will be cared for after their parents' passing. Luckily, individuals may be able to address such concerns as they work on their estate plans. Setting up a special needs trust could prove considerably beneficial.
In many cases, special needs individuals rely on disability income, and a sudden influx of extra money -- such as from an inheritance -- could potentially lead those individuals to be disqualified from obtaining that income. Therefore, many parents likely want to avoid possibly causing issues with their children's income while also providing them with an inheritance. In these cases, information on special needs trusts could help.
This type of trust allows the money in the trust to be used to the benefit of the special needs person. The funds in such a trust could allow for additional expenses that may not be covered under other assistance programs, like taking family trips or buying extra necessities. Additionally, this trust could potentially help a child avoid uncertainty with caregivers after parents' deaths.
There are many types of trusts that could be useful to Maryland residents, but those with children who need assistance may wish to look more closely at a special needs trust. Additional information on this type of trust and how to set up such a fund could allow interested individuals to determine whether it could suit their circumstances. Speaking with experienced estate planning attorneys could allow concerned individuals to gain more specific insight for their particular cases.
Source: fool.com, "Middle America: Is a Trust Right for You?", Todd Campbell, Sept. 18, 2016