Special needs trusts are a type of trust that can be named for the beneficiary's special need. They allow individuals with special needs to receive monetary support from their family and friends, tax free, to help cover the increased expenses related to their care.
This type of trust allows the trustee (the person who set up the trust) to make decisions on behalf of the beneficiary (the person who will receive the benefits from the trust). The trustee typically has authority over money and property held in the trust. You can discover more about special needs trust via https://elderlawofaz.com/special-needs-planning/ for your specific needs in Arizona.
A special needs trust can provide benefits such as:
- Financial assistance, such as cash support or assistance with bills.
- Housing assistance, such as help with rent or mortgage payments or grants for purchasing a home.
- Health care services, including financial assistance for expenses related to health care, such as doctor's visits or prescriptions.
- Services that help people with disabilities live independently, such as personal care aides or home modification specialists.
The process of creating a special needs trust can vary depending on the specific needs of the individual. However, in general, the creation process will generally take between one and two months. During this time, you will need to gather all of the relevant information and documents necessary for forming the trust.
Once you have completed the forms and gathered all of the necessary information, your lawyer can begin drafting the trust document. This document will outline how money will be distributed among beneficiaries and will include provisions for taxes, insurance, and other financial matters. Once the trust has been finalized, it will need to be filed with state authorities. Depending on the specific state laws in question, this may take between one and six months.
Overall, creating a special needs trust is a straightforward process that requires only a few hours of work from both you and your lawyer. By following these simple steps, you can ensure that your loved ones are financially secure no matter what happens during their lifetime.