This strategy will require the assistance of an attorney who specializes in special needs planning, along with your financial professional.
The individual with special needs generally should not be a designated beneficiary of any retirement accounts, life insurance, annuity contracts or brokerage accounts. These financial assets could jeopardize eligibility for government benefits.
When a special needs trust is used, the trust beneficiary cannot have direct access to assets - trust distributions should be at the trustee's sole discretion.
Life insurance may be needed on the lives of the primary caregiver AND the primary breadwinner, if not the same person.
If you want to know more about the special needs trust, please contact us as we can bring in experts to help design the best plan for your needs.