One of your primary goals for your estate plan may be to take care of your family long after you have passed. You can accomplish this by designing your plan in a way that will allow you to set aside money, protect your assets and ensure that your money ends up in the right place. There are a variety of estate planning tools available that could allow you to accomplish these goals in an effective manner. One of the ways you may be able to do this is by establishing a trust.
A trust is an estate planning tool that allows you to set aside and protect your assets for a specific use in the future. A trust is often a more effective way to pass your wealth than simply designating an heir in the terms of your estate plan. If you want to provide for a special needs loved one in the future, there is a specific type of trust that could allow you to accomplish that goal.
The benefits of a special needs trust
If you care for a special needs loved one, you know that it can be difficult to provide for someone who cannot care for himself or herself. He or she may need assistance managing money, buying necessities or simply meeting his or her own daily needs. If you want to ensure that they have what they need even if you are no longer around to provide it for them, a special needs trust is a smart way to accomplish that goal. Benefits of this type of trust include:
- A special needs trust will not compromise the beneficiary’s eligibility for public benefits.
- You will get to name a person to act as the trustee, ensuring the proper use of assets.
- This type of trust can allow you to provide for needs your loved one has that government benefits do not cover.
When you create a special needs trust, you can outline the terms that are important to you regarding how to manage and distribute the trust assets. You can also name a specific person to act as the trustee, ensuring that your loved one has proper care and financial support long into the future. An assessment of your case can help you understand whether a trust could be a beneficial addition to your New Jersey estate plan.