Ask an expert: Is a special needs trust necessary?
Founder and CEO of BestLifeRates.org
The best thing one can do when caring for someone with special needs is to use a supplemental-needs trust. When life insurance is owned and paid to a trust of this kind, the assets and their value are held outside of the insured’s estate when considering governmental benefits. It also allows for the creator(s) of the trust to determine the basis for disbursements, to a degree. This is especially important for someone who is not yet of theage of majority — or under 18 — or is unable to properly manage their own finances.