Understanding the Time and Place for a Special Needs Trust
Updated: Mar 17, 2020
If you have loved one with a disability, you cannot neglect the opportunity to protect their future with a special needs trust. In general, trusts enable you to have some level of control over the distribution of assets intended for either yourself or someone else.
In the case of a special needs trust, the strategy goes one step further by providing not just the assets that will help a loved one with a disability pay for their needs, but distributes this property in a manner such that the disabled party continues to receive access from state and federal support programs.
A Michigan trust attorney can help you select a trust agreement that is most appropriate for your situation. There are two primary types of trusts in Michigan known as a third-party special needs trust or a first party special needs trust.
The primary difference here is that anyone can create a third-party special needs trust since the settlor and beneficiary do not have to be related. A first party special needs trust, however, is funded by assets owned by the person with special needs.
It is important to have a Michigan trust attorney at your side when drafting and funding a trust for someone with special needs because this has to include specific clauses to ensure that there is no interference with government benefits. Knowing that you have done everything possible to protect your loved one for many years to come can give you confidence and peace of mind.