Your primary reason for making long-term legal and financial plans is caring for and supporting loved ones after you are gone. You want to ensure that your designated New Jersey beneficiaries get the assets you leave for them, and you have clear instructions for the distribution of these assets outlined in your estate plan. One factor to consider is whether or not your designated beneficiaries may be capable of managing money and assets on their own.
If you have a disabled child or loved one for whom you wish to leave money for his or her care, there are specific ways you can accomplish this goal. Leaving assets directly is likely not the most effective or prudent way to do this. It may be helpful for you to learn about the various estate planning tools available to you that will allow you to care for a special needs beneficiary well into the future.
Leveraging the benefits of a trust
A trust is one of the most effective and practical ways you can care for a loved one who requires additional help and support. Assets left in a trust are set aside and protected for a specific use, which in this case would be the support of a disabled individual. A special needs trust offers you specific benefits, which include:
- The money and assets left in a special needs trust do not impact the beneficiary’s eligibility for government support and other types of public benefits.
- You can name a trusted and responsible individual to oversee the distribution of assets held in the trust, ensuring their intended use.
- A special needs trust can ensure your loved one will have money to cover the needs he or she may have not covered by government benefits.
- You can have peace of mind knowing that your loved one has protection and security in the future, even if you are not around to personally ensure it.
You can create an estate plan that will allow you to decide what happens to your hard-earned wealth and assets, including caring for loved ones who may not be able to care for themselves. As you consider the needs of your beneficiaries and heirs, you may benefit from an explanation of how a special needs trust or other specific estate planning tool will allow you to craft a plan that is effective and sustainable.