Developing a trust constitutes a responsible decision, and specific trusts exist to substantially benefit individuals with special needs across Colorado. You want to protect your special needs child by providing assets to them in the future, but you worry that your generous gifts will cause them to lose government funding.
The United States adjusts Social Security Disability and other types of government aid benefits based on income and wealth. Should your special needs child show, on paper, that they received a substantial amount of assets or inheritance after you pass away, the government has the authority to take away all funding to your child. However, if you create a special needs trust, the government cannot use these assets as income when determining whether your child qualifies for aid. Whether you are old or young, developing a special needs trust for your child offers you peace of mind that your child will receive necessary aid when you pass away.
Creating a special needs trust
Before developing a special needs trust, you must ensure that your child qualifies for the benefit. To be eligible, your child:
- Must be under 65 years old
- Must be disabled according to the Social Security Administration
You may develop a disability trust form easily in Colorado. After providing identification information of both you and your child, you must list all assets to be provided in the trust fund including:
Special needs trusts are irrevocable in Colorado. Therefore, you may not change or alter the document unless your child dies or no longer requires government assistance, which would make them ineligible for the trust.
You want to create a disability trust if your child is disabled, so that you can ensure that they are provided basic needs through government aid after receiving your generous trust gift. To receive adequate advice on developing the trust, you want to speak with a knowledgeable attorney about the necessary items required to obtain a valid special needs trust.