When specific property is being managed by a trustee for the benefit of another person, it is called a trust. The trust may last as long as required. In some cases, it lasts till the beneficiary comes off age, or till the money is gone. People with special needs often have trusts created for them because they are unable to manage their finances. The beneficiaries may be elderly or those with a mental disability.
People with disabilities are eligible for Supplemental Security Income, Medicaid and other government benefits. Receiving a large sum of money through another person's will might disqualify them from these benefits. Even though the trust fund money might be enough to cover the beneficiary, it is advisable to hold on to government benefits. Trusts allow beneficiaries to keep receiving government benefits along with the money from their trust funds. A special needs trust is usually created to transfer inheritance funds to a disabled beneficiary.
The trustee must be someone who the beneficiary can trust with their financial decisions. In most cases, the trustee is a close family member or relative. If this person is not available, the court might appoint a third party trustee to manage the trust fund. A trustee must be chosen with great care, especially with special trust funds. Trustees for special trust funds should always be people who the beneficiary is comfortable with. A pooled trust might be a good option if finding a trustee is proving to be difficult. Pooled trusts are run by nonprofit organizations that invest the money and maintain the beneficiary's account.
Creating a special needs trust fund is a complicated process because the required language must be accurate. You might want to get in touch with an experienced probate attorney who can set up the trust fund for you. The attorney will oversee the entire process and make things easier for you.