A special needs trust is a type of trust that can be used to provide financial support for someone with a disability, without impacting their eligibility for government benefits. Setting up a special needs trust in Chicago can be a complex process, so it is important to seek professional advice to ensure that the special needs trust is set up correctly.
There are two main types of special needs trusts: first-party trusts and third-party trusts. First-party trusts are funded with the disabled person’s own assets, while third-party trusts are funded with money from someone else, such as a parent or grandparent.
There are also two different types of special needs trusts that disabled person and their loved ones can use: ABLE accounts and pooled trusts. ABLE accounts are tax-advantaged savings accounts that can be used to cover qualified expenses, such as housing, education, and transportation. Pooled trusts are managed by a non-profit organization and allow a disabled person to pool their resources with other beneficiaries.
Each type of special needs trust has its own advantages and disadvantages. Therefore, it is important to carefully consider which type of special needs trust is right for your situation before setting up a special needs trust in Chicago.
The most important thing to remember when setting up a special needs trust is to seek professional advice to ensure that the trust is set up correctly. Visit Life’s Plan, Inc. to learn more about special needs trusts and schedule an appointment with a knowledgeable professional at Life’s Plan, Inc. today.
