You are going to leave money behind to an individual with disabilities that prevent that person from working, and you are trying to figure out the best way to do it. Should you leave that person a direct inheritance or should you set up a special needs trust?
You want to do all you can to help your child, who has special needs. You know there are benefits and government aid programs.
If you have a child with special needs, you have undoubtedly grappled with concerns about his or her future. Depending on the circumstances, you may need to determine whether your child will require a guardian after he or she turns 18 years of age.
You're looking over the pros and cons to a special needs trust, trying to determine the best course of action. There's a lot to consider, and a significant financial move like this isn't something you want to take lightly.
While there's an expectation that your child will eventually grow up and be self-sustaining, this isn't necessarily the case if you have a child with special needs. If you do, then most likely your obligation to care for them is long term, which includes devising an estate plan that can ensure they're cared for once you, yourself, have passed.
If you have a loved one with special needs, you undoubtedly want that individual to enjoy every available benefit -- and not to be unnecessarily held back in any way. But the truth is that people with special needs are often placed in a position that does limit their ability to enjoy simultaneously the benefits of family wealth and the benefits of government assistance.