What Assets Can Go Into a Special Needs Trust?

Did you know that people with disabilities comprised 14.0% of the US population? In fact, 23 million people with disabilities require lifetime support, which affects 17% of US households.

A Special Needs Trust (SNT) is a powerful tool for protecting a person with disabilities while preserving their eligibility for essential government benefits. One of the most important steps in setting up an SNT is understanding which assets can be placed into the trust. 

Beneficiaries can use real estate, personal funds, insurance claims, and inheritances to help them long-term. With the help of a special needs trust lawyer, you can set up your trust correctly and protect your beneficiary’s financial future, keeping them eligible for vital public benefits.

Let’s see all the available choices and assess the potential impact that can be achieved through the Special Needs Trust.

Cash and Cash Equivalents

Cash and its equivalents form a critical aspect of the special needs trust for your loved one's management. These primarily provide liquidity, enabling prompt use of funds for pressing needs unique to your loved one. 

Cash and equivalents can broadly mean insurance through savings accounts, money markets, or short-term investment options that will not only yield easy liquidation but will also keep the main body intact. 

These will essentially fund normal, everyday running charges and short-term medical expenditures, as well as possibly maintain long-term peace of mind, knowing that you have backup for unforeseen costs. These can be observed so much that part of the benefits of a term life trust will be to ensure judicial protection for his or her financial health. 

Establish a foundation based on cash and cash equivalents, as this represents the ideal asset base for ensuring the health and welfare of your loved one, along with the assurance of other benefits they will be entitled to enjoy.

Real Estate and Property

An obvious income for the special needs trust includes assets like land and estate, all of which depend on stability and long-term backing. Your loved one can benefit greatly from owning a home or property, as it provides peaceful living conditions. 

The home’s security is based on the feeling of belonging and the sense of pervasive security. Stable growth in value over time: real estate as a trust can be a great asset in building the overall value of the account. 

Your other option could be considering rental properties, which, if managed effectively, may provide income to cater for continuous needs. Be advised that the property should be carefully managed for its potential to jeopardize beneficiary eligibility related to government resources. Real estate plays an important role in securing your loved one moving forward.

According to Jacksonville trust attorney Douglas A. Oberdorfer, the probate process can be problematic for your beneficiaries if they do not have the funds to maintain their inherited property.

Investments and Securities

Investments and securities can greatly increase the monetary foundation of a special needs trust. Investors present the potential for growth and include the sovereign investor who's eagerly seeking his or her charges' future security. 

The trust may go long in any variation of stocks, bonds, mutual funds, or ETFs. These provide incremental income and, over a longer stretch of time, capital appreciation for future costs, whose necessity arises when the care and support of your dependent become necessary. 

By diversifying investments, not only are you safeguarding trust assets but also building value efficiently. It gives you the feeling that you are doing something positive to ensure your loved one has ongoing access to the resources to help them live a fruitful and independent life. 

Your thoughtful pursuits do make a difference.

Life Insurance Policies

It can be a useful arrangement to have a life insurance policy to finance the special needs trust to ensure the financial security of their loved one well after the policyholder's own time. By definition, naming the special needs trust as a beneficiary will mean a distinct and lawful way of adequately setting aside the money without infringing upon your loved one's government benefits. 

This is one of the few ways to care for loved ones after death. For peace of mind, it is helpful to ensure that resources are provided to maintain a certain quality of life for them. 

Be sure to choose the right kind of policy and take up the necessary amount of coverage. Study to employ the advice of a financial counselor so you can modify the financial planning in line with the needs of the family.

Personal Property and Tangible Assets

When the insurance pays out and finances are secured, everyone should ponder the possibility of using personal property and physical non-liquid assets to support the trust. These things, such as land, vehicles, and some areas of valuable collections, can afford financial stability as well as emotional fulfillment for your loved ones. 

By placing personal property in trust, you provide assurance that they will have access to what means a lot to them. For instance, it could be a valuable heirloom or a residence. 

You could talk to a lawyer to make sure you don't get asked about benefit status, since these things can make life better and help your child grow in a safe space while feeling more connected to their past and present.