Establishing a trust for your special needs child

On Behalf of | Jul 20, 2021 | Trusts

One of the top concerns for families in Nevada is ensuring that their heirs remain provided for after they’re gone. For those with special needs children, this concern is even greater.

Estate planning can empower you to achieve this goal. In turn, you can rest easy in the knowledge that your child will be okay after you die. Adding a special needs trust to your estate plan is one of the best ways to protect your child after your death.

Options for special needs trusts in Nevada

Yes, in Nevada, there are three types of trusts for those with special needs. Below, you will find a brief description of these trusts.

Third-party trust: Also known as a family trust, this legal tool allows a relative like a parent or a grandparent to establish a trust for someone with special needs. Many choose this type of trust because the individual it covers can receive gifts without compromising the trust.

First-party trust: Until fairly recently, competent adults with special needs could not create trusts for themselves. In 2016, the Special Needs Trust Fairness Act gave those with disabilities the power to establish a trust to protect and provide for themselves.

Pooled trust: Typically established by a non-profit organization on behalf of someone with special needs, a pooled trust may be appropriate when the options discussed above are impractical. For example, after receiving an inheritance and putting it in a pooled trust, the trustee can invest these funds for growth.

When considering a special needs trust, it is wise to seek legal guidance. Doing so can ensure that your disabled family member remains eligible for government benefits even though they have a trust on which they can rely financially. Learn more about estate planning and trusts to make the most of your special needs child’s future.