May 19, 2008 / White Oaks Wealth Advisors

Special Needs Trusts In A Wealth Management Plan

In the first three parts on our series on trusts we discussed Testamentary, Revocable Trusts and Irrevocable Life Insurance Trusts. Many people reach decisions to implement them since the decisions are distant (after death in the case of a Testamentary Trust) or we are not giving up (Revocable Trust) any assets or control currently. The Special Needs Trust or Supplemental Needs Trust is a different species within the irrevocable trust category as the purpose is very much different than many others.

There are individuals who have needs very different than many of us. Impaired abilities to work, learn and function in the mainstream make it more difficult or impossible to function in a traditional income earning way. Our society, gratefully, provides many resources for individuals who are in situations such as this. While government assistance programs exist to help these individuals, their restrictions on assets and producing assets could eliminate them from benefits they would otherwise qualify for.

For these reasons the Special or Supplemental Needs Trust came into being. It allows for an individual to place assets into a trust for the benefit of the person to ONLY pay for items not being taken care of by assistance programs that would improve the overall quality of life. This could provide for small things like TVs or could be used for trips that ordinarily would not be covered by the governmental aid program.

Of course, these trusts are legal documents and need to be drafted by competent legal counsel familiar with such matters. Another good resource is ARC. They have an article that explains more about these trusts.

For more information, please read more posts from of our series on trusts using the link below.

Top 10 Reasons to Establish a Trust
Revocable Trusts in a Wealth Management Plan
Irrevocable Trusts in a Wealth Management Plan
Charitable Giving using Trusts in a Wealth Management Plan
Special Needs Trusts
Passing Real Estate on to the Next Generation with Trusts

White Oaks Wealth Advisors offer trust services to clients throughout the United States from its offices in Minneapolis, MN and Longboat Key, FL.

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Investment advisory services provided by White Oaks Wealth Advisors, Inc. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation. Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful.