Do you know that a handicapped trust allows you to fund your loved ones without risking their government benefits? A handicapped trust can provide financial security and allow for the continuation of government benefits.
Creating a handicapped trust is essential for those who care for a loved one with special needs. Read more below to understand how a handicapped trust works and its benefits.
How a handicapped trust works
A handicapped trust avoids spending a beneficiary’s assets for long-term care or other costs associated with the disability. This is because the assets held in a trust are not counted as the beneficiary’s assets, which makes them exempt from government funding and other public assistance eligibility requirements.
Benefits of handicapped trust
• Financial Security – A handicapped trust ensures that your disabled family member will be able to receive financial security and support in the event of your passing.
• Avoids Estate Taxes – A handicapped trust can also help avoid estate taxes. When setting up a trust, you can designate beneficiaries and specify the distribution of your assets upon your death. This ensures that your assets will go to the right people without tax penalties.
• Professional Management of Assets – Establishing a trust also allows professional trustees to manage your assets on behalf of your disabled family member.
• Flexible Terms – A handicapped trust also provides you with more flexibility when it comes to managing funds. You can set up rules for how and when you can access the funds, allowing you to decide what is best for your loved one’s needs.
When funding a disabled person, you risk them losing any government benefits. On the other hand, a handicapped trust has many advantages for the beneficiary, including financial security and flexible terms. If you want to enroll your loved one in a handicapped trust, then Ratna Nidhi charitable trust is the place for you.
