In New York, parents have the opportunity to set up trust funds for their children. However, when they are the parents of a special needs child, these trust funds could become more critical. A Special Needs Trust Attorney Orange County NY walks parents through this process.
Creating the Trust
Parents create the trust fund by setting up an account for this purpose. With this account, they have the opportunity to contribute to the fund throughout their lives. There aren’t any limitations for the total value in which they could contribute to the fund. They can set up a plan to deposit a specific amount each pay period or month.
Defining Provisions for the Trust
The provisions of the trust protect the funds from outsiders. They determine how the funds are used and how often their child receives money. These restrictions prevent a caregiver from taking advantage of the child due to mental incapacity.
The provisions should include the enforcement of accountability. For example, an administrator could enforce an accountability clause by requiring receipts for any money spent. The caregiver or guardian must provide evidence to show that they are using the resources for the child’s benefit. This prevents them from profiting from the child’s misfortune.
Assigning Power of Attorney for a Guardian
The parents utilize the planning process to assign a power of attorney for a guardian. The power of attorney defines how the guardian will care for the child. It also defines how they can use the funds from the trust to support the child.
Protection for the Individual
Under disability laws, special needs children are protected. The laws protect them from individuals who are trying to use them for capital gains. This includes the potential for fraud and unauthorized use of resources.
In New York, parents have access to legal tools that allow them to provide for their children. The creation of trust funds help these parents leave behind adequate assets to supplement their child’s income. For special needs children, this support could enable them to live a financially stable life. Parents who wish to set up a fund should hire a Special Needs Trust Attorney Orange County NY should contact Mark Aberasturi today.