Funding Your Special Needs Trust: A Guide for Parents and Guardians

I recently had a client who wanted to develop a Special or Supplemental Needs Trust for the child. For parents and guardians seeking to provide financial protection for a child with special needs, establishing a Special Needs Trust (SNT) is a crucial step.

Here are some common ways to fund an SNT:

• Cash: Gifts or deposits from family, friends, or settlements

• Investments: Stocks, bonds, and mutual funds

• Life Insurance: Proceeds from life insurance, including survivorship or “second-to-die” policies

• Real Estate: Homes or other property

• Personal Property: Valuables like jewelry, art, or vehicles

• Settlements or Inheritances: Funds received by the beneficiary

Choosing the proper funding method depends on your family’s unique situation. It’s important to consult both a financial planner and an attorney to protect your child’s eligibility for government benefits and guard against financial risks.

If you have questions or need guidance, don’t hesitate to reach out at 334.398.8948