Don, AOT Name Your special needs child as the beneficiary of your life insurance

Don, AOT Name Your special needs child as the beneficiary of your life insurance -Even if you think you, Aore do the right thing if you name your child with special needs special (or grandchildren, siblings, etc.) as the beneficiary of your life insurance, you may be doing the wrong thing. Here, AOS why. Under current federal law, a person with more than $ 2,000 in assets is disqualified for most needs-based government benefits. state assistance programs may also be based on need. If your child should receive an inheritance from you directly, including the proceeds of a life insurance policy, it, AOS highly probable that the inheritance would disqualify the child to receive necessary benefits. Do not leave them directly to the child.Instead, create a trust with special needs and leave the assets to the trust. Confidence special needs will provide financial assets for future care child, AOS disabled and welfare while maintaining eligibility child, AOS for government benefits. Trust is managed by a trustee, who can then use the trust property in the name of child, OSA.In a special-needs trust well structured, the trust holds title to the benefit of the disabled child or adult. The assets of the trust special needs can then be used to meet the needs of the disabled, as well as complement the benefits received from government assistance programs. For example, the assets of the trust can be used to:

• transport, including the purchase of a vehicle
• training, rehabilitation or education
• equipment
• , the dental and medical eye
• entertainment
• insurance premiums
• health aid spending companion / home
• products to improve the quality of life / self-esteem

a trust special needs may hold cash, and the title of shares, bonds, mutual funds, real estate and personal property. In addition, it may have and / or be the beneficiary of life insurance policies, one of the cheapest ways to fund a trust with special needs. Another use for special needs trust is to receive funds from personal injury settlements without jeopardizing eligibility for government benefits.To maintain eligibility for government benefits, it, AOS significant that well-meaning family members, such as grandparents, understand that their will should bequeath assets to the trust special needs and not directly to the disabled person.Keep in mind that trusted special needs requirements are strict, so it, AOS significant that you work with financial experts and qualified legal when establishing a trust with special needs .