It’s common for a family member to provide financial assistance to a loved one who is mentally ill or physically disabled. In these situations, a special needs trust in Illinois helps them regulate how the money is used by the recipient. This helps ensure the funds will last for a predetermined period of time. This type of trust provides benefits to the recipient in addition to helping them meet their financial obligations.
Protects Government Benefits
When someone qualifies for a permanent physical or mental disability, they may be able to receive government assistance. That assistance is dependent upon the fact that they aren’t also receiving financial assistance from another source. Since a trust is a private document, the recipient can access those funds without compromising their eligibility for government assistance.
Funds Are Protected
A special needs trust in Illinois is a type of irrevocable trust, which means it cannot be altered or ended without the permission of the recipient or beneficiary. Additionally, the funds cannot be seized to repay creditors or to payout a lawsuit award. This ensures the recipient will be able to rely on that money for the designated purposes.
A Trustee Oversees Disbursements
When you establish a special needs trust in Illinois, you’ll have to choose a trustee. This is the individual who will be responsible for dispersing the funds in the trust. They will do so by adhering to the stipulations you lay out in the document. For this reason, you should review the document with your attorney to ensure its legally binding and will serve its intended purpose.
If you want to set up a special needs trust for a loved one, get started by contacting Life’s Plan, Inc.
