Special Needs Trust Multiple Sclerosis

Quite often, a will serves as the cornerstone of a financial estate plan. This is a binding legal document that will determine how your estate is distributed after you die. In addition to distributing property, wills can be used to handle certain personal affairs, such as planning funerals and/or making sure that your loved ones are cared for properly if they are legally incompetent or are likely to become incompetent. Parents and guardians can use the will to name their successors. Such designations, depending on the jurisdiction, may be legally binding or of invaluable assistance to a court in guardianship proceedings, should these become necessary. These designees are known as either successor or testamentary guardians.
 

Special Needs Trust Multiple Sclerosis

A trust is a binding legal arrangement in which a person transfers assets to another person, known as a trustee, who manages it for the named beneficiaries. This arrangement may be made as part of a will, in which case it is called a testamentary trust, or it may become effective during your lifetime, in which case it is called a living trust. Additionally, a living trust may be changeable during your lifetime (revocable) or it may be fixed (irrevocable).
 
A trust can be used to select a trustee who will look out for the financial and personal interests of your loved ones without the need for a guardian, and it may result in substantial tax savings. Disadvantages of a trust can include complexity, cost, and the possibility that changing circumstances will leave the trustee without the most appropriate options.
 

Although trusts may come in many forms, relevant types include:

• Contingent testamentary trust - The proceeds of an estate go first to the surviving spouse but at that spouse's death are placed in trust for a child.
• Living trust - A pour-over provision that allows property to be added to the trust for the beneficiary once you die.
• Discretionary trust - Carefully defines the amount and kind of discretion that the trustee will have in distributing or withholding benefits; (in many states, a particular type of discretionary trust called a special needs or supplemental need trust can be established to meet the needs of a disabled child over and above the needs met through government benefits. This trust is designed in such a way that it will add to government benefits without jeopardizing the beneficiary's eligibility for those benefits). 
• Sprinkling trust - Allows you to instruct the trustee to distribute the benefits unequally according to the unique needs of the beneficiaries. 
• Life insurance trust - Helps ensure that the benefits of a life insurance policy will be managed properly. 

It is in your best interests to consult an estate planning attorney in order to make sure that you are pursuing the most suitable option(s), given your financial and social circumstances, so that you loved ones will be protected both financially and socially once you pass away.
 

A THOROUGH LIFE plan is a necessary strategy for protecting your family and avoiding many of the pitfalls that could rob you of your security or freedom. This post provides an overview of the process as well as some options for you and your family to consider. Fortunately, there are now available a number of resources to guide you through the process. To find out more, you can check out Special Needs Trust Multiple Sclerosis.