Special Needs Answers
What Is a Pooled Trust, and How Can It Protect My Benefits?
Beneficiaries of programs like Supplemental Security Income (SS...
Read moreHow Can You Protect Beneficiaries with Special Needs?
- January 26th, 2024
Q
How can I protect my child and their inheritance from being located by predators after their money transfers to a special needs trust? I worry my child will be manipulated and have their money stolen after I’m gone.
A
An inheritance from parents who fund their child's special needs trust through a pour-over will is in the public record and subject to probate. Predators can locate vulnerable beneficiaries, such as the young and those with limited self-protective capacities.
Maintaining Family Privacy
When you plan with trusts, you can decide who has access to the information about your children's inheritance. Funding a special needs trust directly protects your child and other family members, who may be serving as trustees, from predators. A trust is private, and not subject to probate proceedings.
Keep in mind, that if you fund a living trust, it offers no protection from lawsuits or creditors because it is still part of the estate’s property. This is an important consideration for families with children who have special needs. An irrevocable special needs trust has added protection from lawsuits and creditor claims against family members.
Protecting Your Loved One
Learn more about creating special needs trusts, what to know before you begin, and five main considerations during special needs planning. Then find a special needs planner near you for advice about your specific situation.