November Is National Family Caregiver Month: Here’s How A Special Needs Trust Benefits Your Loved One

Since November is National Family Caregiver Month, now is the time to evaluate your trusts or will. Is everything up to date? Have you made a large purchase or sale recently? Do you have a special needs family member? Did you know there are ways to build your estate plan to assist your loved one with special needs?

What Is A Trust?

When building your estate plan, you may have a trust, will – or both! A trust is a legal arrangement in which a third party holds your assets. You can appoint yourself as the trustee and be in charge of your assets, but they technically do not belong to you. With a trust, you control the assets now; once you pass away, the assets are distributed to your beneficiaries. There are several benefits of establishing a trust:

• Avoid probate. With a trust, your assets do not have to go through the probate courts before they are distributed to your beneficiaries. Your assets will immediately transfer to your loved ones.
• Greater flexibility. You have better control of distributing your assets in a trust. Perhaps you are worried your child will immediately spend all the money you leave behind. You can set up a Spendthrift Trust or a Sprinkling Trust to control how much money is given to them over time.
• Reduce taxes. Certain trusts can reduce income, gift, or inheritance taxes.
• Protection of Assets. Since your assets are not in your name, they are protected from creditors, lawsuits or to count against you for federal aid.

A trust may be a bit more difficult and expensive to establish, but some long-term benefits make it worthwhile.

Building A Special Needs Trust

The primary benefit of a special needs trust is that the assets are not in your or your loved one’s name. This means you can still receive governmental aid based on income. The trust can pay for expenses not provided by public assistance programs while preserving quality of life. Some expenses this type of trust can cover are:

• Out-of-pocket medical costs
• Rent or mortgage
• Utilities
• Specialized transportation services
• Tuition for special education programs
• Internet or phone service
• Clothing

You can establish this trust to continue providing your loved one the care they deserve without worrying about losing government benefits. An experienced estate planning attorney can help you build one that works best for you and your unique situation. Whether you care for your loved one in your home or are helping your adult child establish their independence, a special needs trust can give them the extra money they require. Since November is National Family Caregiver Month, now is the time to determine if a special needs trust is right for your family.

Oak Brook Estate Planning Attorney

Do you have questions about setting up a trust in Illinois? Contact the Estate & Probate Legal Group at 630-864-5835 today. Our experienced attorneys understand applicable laws and can advise you on the best options to protect your loved ones.

Areas we serve: Cook, DuPage, Kane, Lake, Kendall and Will counties