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The Little-Known Benefits of Pooled Trusts
When planning for a special needs individual, there is no one-size-fits-all plan. While a first-party or third-party special needs trust is the solution for some families, a pooled trust has some distinctive benefits that might make it a better fit for some families. An article from the Special Needs Alliance, an excellent resource for families with a special needs individual, looks at what a pooled trust is and when it might be your best planning option.
Planning Ahead for a Special Needs Beneficiary
When trying to ensure resources are available even after your death for a special needs child, you have a few trust options. One such option is a third-party special needs trust, and according to an article from Special Needs Answers titled ”What is a “Third-Party” Special Needs Trust and How is it Different From Other Kinds of Trusts?”, it’s used under different circumstances than first-party or pooled trusts.
First-Party Special Needs Trust Essentials
While there are different avenues to taking care of a special needs individual, when contemplating estate planning, a special needs trust is often the best option. Special needs trusts protect special needs individuals from losing out on government funding due to means-based asset tests by putting additional assets into a trust that won’t be counted against them. These funds can be used for things like, “education expenses, a vacation or hobbies”, according to an article on Special Needs Answers, “What Is a ‘First-Party’ Special Needs Trust and When Is It Useful?”. Since government benefits are often crucial for a special needs individual, these trusts are an important way to ensure access to those benefits.
Benefits of New Law for First-Party Special Needs Trusts
On December 13, 2016, President Obama signed the Special Needs Trust Fairness Act into federal law, as part of the 21st Century Cures Act. An article from The Ledger, “Special-Needs Trusts for Disabled Individuals Now Easier,” goes into detail about the new benefits for special needs individuals provided by this new law.
3 Steps for Parents of a Special Needs Child
It can be easy for parents to focus solely on the wellbeing of their child and leave personal planning on the back burner. But as discussed in a Today’s Caregiver article, “Planning for the Future with a Special Needs Child – Part 2,”, parents of special needs children must plan for themselves as well as for their child beyond their lifetime.
