If you have a child with special needs, a trust may be a financial priority. There are many crucial goods and services that Medicaid and Supplemental Security Income will not pay for, and a special needs trust may be used to address that financial challenge.
In planning a special needs trust, a pressing question must be answered. When it comes to funding the trust, what are the options?
“As a father has compassion on his children, so the Lord has compassion on those who fear Him.” Psalm 103:13.
There are four basic ways to build up a third-party special needs trust. One method is simply to pour in personal assets, perhaps from extended family as well as immediate family. Another possibility is to fund the trust with permanent life insurance. Proceeds from a settlement or lawsuit can also serve as the core of the trust assets. Lastly, an inheritance can provide the financial footing for this kind of trust.
Families choosing the personal asset route may put a few thousand dollars of cash or other assets into the trust to start, with the intention that the initial investmen ...
