Estate planning in Madison, WI is not just reserved for those who are retired or have been told to get their affairs in order. Everyone should complete estate planning sooner rather than later. Special needs trusts exist for those who have a special set of circumstances that cause them to receive government funds. Here are three trust-types to consider.
The first party trust holds the assets of the individual with special needs. The purpose of a trust is to hold the assets of the person while not restricting access to their benefits. There are several types due to regulations. A person’s circumstances should be matched up to the law as best as possible to maximize the funds.
A third-party trust allows an individual’s family, namely the parents, to set it up and control it. The trust can be funded with the person’s benefits as well as other assets such as property, stocks, and bonds. The main point to remember about this one is that one the individual passes away, the assets are passed on to the family.
This trust allows individuals to join a pool. Their resources fund it. Often, this type is used for investment purposes. Each beneficiary still has access to their resources. A part goes to pay for the needs of each participant. Another part is designated for trust.
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