You can set up a special needs trust without a disability issue, but it’s not clear why you would specifically want one. There are many kinds of trusts, and another type might suit you better.
Reasons for Creating a Trust
Trusts are legal arrangements used in estate planning alongside wills and advance directives. They allow a person you assign as trustee to manage funds and property for the trust’s beneficiaries. Depending on your need for the trust, it can be a simple or complex process to set one up and fund it properly. Trusts are used for many reasons, including:
-
Avoiding probate
-
Minimizing tax consequences
-
Controlling the distribution of assets to children and adults who need guidance when inheriting large sums of money
-
Preserving significant money or property from Medicaid estate recovery
-
Protecting government benefits for people with special needs or disabilities
You might want to read The Baby Boomers’ Guide to Trusts to learn more. Then, contact an estate planning attorney to help you make the right choice regarding your trust.
Harry S. Margolis practices elder law, estate, and special needs planning in Boston and Wellesley, Massachusetts. He is the founder of ElderLawAnswers.com and answers consumer questions about estate planning issues here and at AskHarry.info.
