Managing a Special Needs Trust Fund in Chicago
needs trusts serve a valuable purpose when helping parents, family,
or caregivers. These ensure disabled persons receive adequate support
to cover medical and legal costs. However, if the recipient of a
special needs trust passes away, what happens to the leftover funds?
should you do with leftover special needs trust funds?
Each family’s situation will be different, so the decision will
of the State
of the time, special needs trusts must meet certain regulations.
Otherwise, they will not avoid being included as the beneficiary’s
assets after death. As a result, using them may minimize tax
liabilities as well as limit taxable income. Thus, they can make it
easier to qualify for state programs, such as Medicaid.
trust grantor could choose to send the remaining funds to a charity
if desired. If a charitable organization has helped your family,
sending the funds to them may be a good option. Furthermore, sending
the leftover funds to them can help a family cement their legacy.
families opt to divert excess funds to other disabled children. Since
they can cost a lot to maintain, sending the fund to them can lessen
the burden. If the individual who passed away had kids, they could be
seen as inheritors, and you can send the funds to them.
the people who donated funds to the trust may wish for them to be
returned. If your special needs trust has generous donors, sending
the leftover funds to them may be good.
should you do with leftover special
needs trust funds in Chicago, IL?
to learn more.