McCullough & McCullough | Lawyers Serving South Texas For Three Generations

Estate Administration
& Probate

Estate Planning

Real Estate Law

Business Law

How long may a special needs trust have to last?

On Behalf of | Mar 1, 2023 | Wills And Trusts

For years, you loved your son, took care of his needs around the clock and helped him live as normal of a life as possible. But unlike other parents, you are one who has a child with special needs.

You understand the dedication you and your spouse require to take care of him as well as the burden of the costs related to his care and needs. You also know that there is a strong possibility that your son will outlive both of you, so you need to consider a valuable estate planning tool: a special needs trust. But you wonder, how long will this trust have to last?

Trust does not disqualify beneficiaries from receiving government benefits

The funds within a special needs trust may include money, investments, real estate and even personal items. These necessary funds will be used to pay for whatever the beneficiary needs. Typically, the funds pay for medical-related expenses, home health care, housing costs and transportation.

A major attribute of a special needs trust is that it provides beneficiaries with significant financial support without disqualifying them from government benefits such as SNAP, Medicaid and Supplemental Security Income (SSI).

May need enough assets to last 40 years

Understand that a special needs trust may need a significant amount of assets because your child may live for decades – well into adulthood — upon your death. To fund the trust, it may be a good idea to reach out to loved ones, relatives and friends who may wish to contribute.

A special needs trust may have to last as much as 40 years. Because of this, the trust may need assets equivalent to as much as $1 million. For starters, understand that group home costs may be at least $72,000 per year while buying a condo unit for the beneficiary may set you back at least $300,000.

Research, decide and peace of mind

Thoroughly research this situation. Make decisions that will help your son live in a manner as independently as possible. Having a special needs trust in place likely will provide you and your family with significant peace of mind.

FindLaw Network