For a lot of people, at its heart, estate planning is about taking care of yourself and your loved ones once you pass away. Although some estate planners see no need to do anything other than create a will that equally distributes their assets to their loved ones, those who take this simple approach may wind up missing out on many benefits offered by thoughtful estate planning. This is why it’s important to know your estate planning options and how to utilize them to your advantage as fully as possible.
Is a special needs trust right for you?
Take, for example, the special needs trust. This type of trust is irrevocable, meaning that once assets are placed in the trust they can’t be removed. That might sound too permanent for your liking, but there are major benefits to a special needs trust.
To start, the assets placed into the trust are exempt from income calculations when considering eligibility for government programs like Social Security disability, Supplemental Security Insurance, Medicaid, and Medicare. This means that you can provide additional support for your loved one who has a medical condition or the need for long-term care without affecting the support they might receive from the government.
Another benefit of a special needs trust is that it protects assets from creditors. So, if you pass away with debt or are subjected to a judgment, your loved one can enjoy those assets without worry that they will be taken away.
Seek out a customized plan that suits your needs
Your estate plan can be custom-tailored to address just about any set of circumstances. Therefore, you shouldn’t settle for a cookie-cutter approach that leaves your assets and your loved ones’ wellbeing susceptible. This is why many people choose to work closely with an estate planning attorney who can help them develop the plan they need and deserve.