For Wisconsin residents, structuring a long-term financial plan is critical if you have beneficiaries living with a disability. The experienced team at The Law Office of Rollie R. Hanson, S.C., can help you set up a trust that provides for your loved one without jeopardizing current or future financial benefits from the government.
Her Wealth reports that a special needs trust holds and protects financial assets for disabled beneficiaries. Also known as a supplemental needs trust, this legal structure can receive contributions from several sources including gifted assets, insurance proceeds and legal settlements. The initial trust language specifies the intended use of funds. It contains provisions designed to fulfill the needs of someone with mental or physical disabilities.
One of the benefits of the trust structure is that a trustee appointed by you can oversee the distribution of assets and manage investment decisions. This individual or organization can administer funds and watch over the assets within the trust. Designating a successor trustee in addition to the initial administrator ensures there is someone in place if you or your first choice pass away unexpectedly or becomes incapacitated.
This financial tool can also protect assets if your beneficiary goes through a divorce or becomes involved in a lawsuit. Divorcing couples may include a trust in the settlement and use it for the accumulation of assets set aside for a disabled child. You may establish a special needs trust while you are living or have your estate plan authorize one upon your death. The source of funding typically dictates the type of trust and rules that apply. Visit our webpage for more information on this topic.