A special needs trust is a type of trust that can be set up to provide financial security for people with disabilities. This is important because the assets in the person’s name could be at risk if they were to become incapacitated and unable to take care of themselves. This blog post lists the most common mistakes you should avoid when setting up a special needs trust in Illinois.
Assuming the Person Is Too Young to Need One
One of the most common mistakes people make when setting up a special needs trust is assuming that their beneficiary isn’t old enough to need one. Children typically require a trustee until they reach adulthood, which can be at any point from 18-21 years old depending on individual state laws. This means that parents may not always have control over how much money is spent on their children until they reach adulthood.
Thinking That Medicaid Will Cover All of Their Care Costs
The assumption that Medicaid will cover all of the beneficiary’s care costs is another common mistake people make when setting up a special needs trust. The reality is, there are limits to what benefits Medicaid can provide, and if you want to ensure your child doesn’t exhaust their eligibility for government assistance with medical expenses, then a Special Needs Trust in Illinois might be something worth looking into.
Failing to Designate a Successor Trustee in Case Something Happens to Them
A common oversight when setting up a Special Needs Trust is failing to designate a successor trustee who can take over the management of your child’s assets in case something happens to you. Some people will name their spouse as their sole successor, but if they’re not able to care for themselves or become incapacitated then this may be an inappropriate choice.
If you’re searching for a reputable company to help set up a special needs trust in Illinois visit Life’s Plan, Inc. online or call today.
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