Importance of Creating A Special Needs Trust for Your Loved Ones in Arizona
First, you must choose a trustee to set up a trust for your loved ones. This is the most difficult decision for a grantor, so it is important to discuss all options with an attorney.
In Arizona, when choosing a trustee, most people naturally consider their family members. The trustee of a special need trust is responsible for planning distributions to ensure that beneficiaries are not denied public benefits. The trustee role may be filled by family members who may not have the time, skill, or selflessness required to act as trustee. A professional trustee might be an option depending on your individual circumstances.
Consider the different types of trusts that are available to your loved one.
The terms "special needs" or "supplemental needs" are often used interchangeably in trust discussions. A special needs trust is a trust that is set up for someone with disabilities with their own assets. You can also check out more about special needs trust via https://elderlawofaz.com/special-needs-planning/.
This distinction aside, supplemental trusts can be broken down into few types.
Trusts for supplemental needs of third parties
A parent, a family member, or a friend can establish a third-party trust for any age. This trust is "discretionary" and can be used to benefit a person with special care needs. Because it is discretionary, the trustee should be cautious about how the trust money is spent. Any assets remaining after the death of the beneficiary will be divided according to the trust agreement. The trust will not be reclaimed by the government.
In Arizona, it can be difficult to choose the right trustee or trust and how funds should be distributed. However, an attorney can help you work through these issues so that your loved one is well taken care of.