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Special Needs Trust: Parents

Safeguard Your Child’s Financial Future With A Special Needs Trust

All parents want to ensure their child’s well-being. For parents with a child with special needs, preparing to provide for your child throughout his or her lifetime is a real concern. Not only is it essential for parents to prepare a financial plan for the lifespan of their child, but they must also maneuver the complexities of providing financial independence without losing available governmental assistance like Supplemental Social Security benefits; vital long-term nursing care provided through Medicare; and Medicaid health benefits and Supplemental Nutrition Assistance. Navigating benefit systems is difficult enough without the added challenge of providing accessible income while retaining applicable government benefits. There are limitations to the amount of funds a child with special needs is able to have in his or her name to retain Supplemental Security Income. That is why a Special Needs Trust might help. 

So, how do you plan for financial security for your child with special needs?

A Special Needs Trust can be used so your child may enjoy the use of property that is held in a trust for his or her benefit, while at the same time allowing for the preservation of government benefits and protection of assets.  Additionally, funds from a Special Needs Trust are not considered a part of your estate because they are titled to the trust.  Funds used to create a Special Needs Trust may be tax deductible* and are only used to care for your child with disabilities and not made available to creditors.

There are three main types of Special Needs Trusts:
  1. First Party Special Needs Trust – holds assets that belong to a person with special needs in situations like an inheritance or an accident settlement
  2. Third Party Special Needs Trust – holds funds that belong to someone who wants to help the person with special needs
  3. Court-Ordered Trust – holds funds inherited or granted from a settlement through a court proceeding
How A Special Needs Trust Works
  • A trust is set-up through your attorney to provide income for your beneficiary
  • A trustee is appointed by you to provide financial support for your beneficiary by overseeing the trust property and administration of funds

Texas Gulf Bank’s experienced Wealth Management team can coordinate with your attorney to find the best solution for your child’s needs and provide access to the different types of trusts.  In addition, we can serve as a corporate trustee.  

Interested in learning how we can help with your Special Needs Trust?  

Contact us:  

Ranelle Hampy
Executive Vice President
Wealth Management Officer

Tammy VanNewhouse
Vice President
Wealth Management Officer

READ MORE:  Creating a Family Records Almanac to Organize Your Most Important Personal Information

Interested in a complimentary
consultation with one of our bankers?

*Consult your tax advisor for how a Special Needs Trust might benefit you, depending on your particular tax situation.  

Notice:Wealth Management Department Investments include non-deposit investment products which are:

  • Not bank deposits 
  • Not FDIC insured
  • Not insured by any federal government agency
  • Not guaranteed by the bank 
  • May decrease in value