Generally parents want to prepare their wills in manner that will allow their assets to quickly pass to the direct control and ownership of their children. But for parents of children with disabilities who receive government benefits, an inheritance may make the child financially ineligible for certain government benefits. In these situations a special needs trust may allow for parents to arrange for their assets to benefit their child without putting the child at risk to lose eligibility for those benefits.

A special needs trust will avoid a direct transfer of your assets to your child upon your death. Instead the trust will maintain control of the assets and a trustee who manages the trust will disburse the funds for the child as a beneficiary. In this way the assets in the trust will not count against financial thresholds for benefits eligibility.

It is important that the trustee that you choose for this type of trust is someone who understands the complex guidelines and regulations associated with governmental benefits. Of course you should also choose someone whom you feel comfortable and confident will always act in the best interest of your child. There are professionals and non-profits organizations which specialize in managing these types of trusts.

For many parents of special needs children the question of how they will be cared for after they are gone is a trying question. A special needs trust is one tool which can fill one piece of that puzzle to ensure your child ongoing access to the benefits which they will need to rely upon.

Source: Poughkeepsie Journal "In special-needs cases, standard wills not enough" David Mazzetti, May 7, 2011