FINANCIAL PLANNING
(Special Needs Trusts)

Many well-intentioned parents and relatives don't realize that an inheritance may cause many problems for their child. Under current federal law, an inheritance of over $2,000 disqualifies disabled children from most federal and/or state assistance. However, most states allow "special needs trusts" to be set up for children disabilities. These are irrevocable trusts in which a guardian decides how to spend the money on the child. A trust can hold cash, stocks, personal property, and real property. It can own and/or be the beneficiary of life insurance, can be used to protect personal injury settlements or judgments, and can help parents coordinate their estate planes. For more information, contact a lawyer who specializes in working out the financial details, it is very useful to write up a description of suggestions of how you want your child cared for and/or supported.