Special Needs Trusts for Multiple Children

special needs trusts in alabama
A family with one special needs child faces many challenges every day. But some families have more than one special needs child, which can make their daily lives exceedingly complicated — especially when it comes to finances.
Government benefits like Medicaid and Supplemental Security Income (SSI) are essential for these families, and although the parents are likely aware of the importance of special needs trusts, they may not know how many trusts they need.
Let’s take a look at how to protect the future of your special needs children without unintentionally sabotaging their Medicaid and SSI benefits.

Does Each Child Need an Individual Trust?

It’s best to set up a special needs trust for each child individually; in fact, Alabama Family Trust does not allow children to share a single account. However, as with all types of trusts, you’ll need to consider potential complications regarding the governing of assets or the affordability of setting up more than one trust.
For some families in certain situations, it may be possible to set up one special needs trust for multiple children — but this isn’t always an option, and again, Alabama Family Trust does not allow for this possibility. So let’s take a look at some of the reasons establishing multiple trusts is the best route to take.

Why Are Multiple Trusts Recommended?

Often, a single trust will not be sufficient for more than one special needs child. These situations may include, but are certainly not limited to:

  • One child receiving inheritance or personal injury funds while the others do not. In this case, such funds must be kept in a separate trust and may not be used for other beneficiaries.
  • Children whose needs are vastly different.
  • The need to appoint unique trustees for each child (there may be various reasons for this).

Be sure to have the trust drafted by a qualified professional. The last thing you want is for your child’s special needs trust to end up costing him the government benefits he needs.

Do You Have Questions about Special Needs Trusts

Alabama Family Trust understands your concerns and has years of experience setting up special needs trusts. If you’re ready for more information, contact us today!

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Contact Alabama Family Trust via the contact link below to learn more about special needs trust funds.

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