A special needs trust offers 5 valuable benefits to parents of a child with special needs. Here are the five key advantages:

1. Protection from Financial Exploitation: Individuals with special needs can be vulnerable to financial exploitation. With a special needs trust, the assets are held and managed by a trustee, acting in the best interests of the beneficiary. This arrangement helps protect the assets from potential exploitation or misuse by unscrupulous individuals or organizations.
2. Preserving Government Benefits: One of the most significant benefits of a special needs trust is that it allows your child to maintain eligibility for crucial government benefits, such as Supplemental Security Income (SSI) and Medicaid. These benefits provide vital support for medical care, housing, food, and other essentials. Without a special needs trust, an inheritance or other financial gifts could exceed the asset limits and lead to the loss of these essential benefits. By utilizing the trust, your child can still receive the much-needed assistance while benefiting from the trust’s assets.
3. Supplemental Financial Support: The special needs trust provides an additional layer of financial support for your child with special needs. The funds in the trust can be used to cover various expenses that government benefits might not fully address, such as therapies, specialized equipment, educational opportunities, recreational activities, and any other needs tailored to your child’s unique requirements. This supplementary financial support enhances your child’s quality of life and ensures they have access to the resources they need.
4. Professional Management: Special needs trusts are typically managed by a trustee, who can be a family member, a friend, or a professional trustee. A professional trustee has experience in managing trusts and financial matters, ensuring that the funds are handled responsibly and used for the benefit of the beneficiary. This arrangement can provide peace of mind to parents, knowing that their child’s financial affairs are in capable hands.
5. Long-Term Planning: A special needs trust is a valuable tool for long-term planning. It allows parents to create a financial roadmap for their child’s future care and support, even when the parents are no longer around to provide direct assistance. The trust ensures that resources are available throughout the beneficiary’s lifetime, providing stability and security for the years to come.

In summary, a special needs trust offers parents of a child with special needs the peace of mind that their child’s financial future is secure. It allows for a well-thought-out plan that preserves government benefits, provides additional financial support, ensures professional management, facilitates long-term planning, and safeguards against financial exploitation. By taking advantage of a special needs trust, parents can create a stable and supportive environment for their child’s well-being and overall quality of life.