Creating a special needs trust lets you feel certain that your loved one will have the support they need after you die. However, it can take tens of thousands of dollars to help someone live independently when they have special needs.
Those without that much money in disposable income or liquid assets may worry that they don’t have the means of providing for their child after they die. Thankfully, you don’t need to have cash on hand right now to fund a trust to care for your child in the future.
You can fund a trust with many kinds of assets
There is little argument by financial professionals that moving financial assets into a trust when you create it is the surest way to know the value of a trust. However, if you don’t have enough money to set aside $100,000 or more for your child right now, that doesn’t mean they will be at the mercy of the state when you die.
People can also use assets they don’t currently have or don’t want to get rid of to fund a trust. For example, you can use your life insurance payout to help fund a special needs trust. You could also direct a bank or investment account transfer into the trust at the time of your death. You can even use your family home to fund a trust, thereby ensuring that your child with special needs can keep living in the same space even after you die.
Looking over your assets and the likely support needs of your child with special needs will make it easier for you to plan for a safe and stable future for them.