In addition to Living Trusts, there are additional trusts that may be appropriate for your loved ones situations. As with any legal trust situations, it is best to consult with an experienced elder law attorney to determine what is the best option for your needs.
Testimony Trusts
The Testamentary Trust is created in the will, and cannot be used to provide management of your assets while you are still alive. Testamentary trusts do provide for children and disabled wards you may be responsible for. These trusts are not used as much as they used to be, but they still have a purpose in certain circumstances.
Irrevocable Trusts
Irrevocable trusts are not amendable or revocable by you, beginning at the moment of the creation of the trust. Normally, these are tax-sensitive documents such as life insurance trusts, charitable trusts and irrevocable trusts for children.
Special Needs Trusts
Special needs trusts are also known as supplemental needs trusts. These trusts are completed for the benefit of a disabled child or disabled ward, so that the assets the child will inherit are protected. Because principle and income from trusts is not considered a resource under any of the government programs, this allows a way to supplement the income or benefits the disabled person gets from Medicaid or SSI.
In a special needs trust, the funds to not go directly to the disabled child. Instead, the trust can pay for medical costs not covered by insurance, can pay for vacations, a house that is then rented back to the child, or other non-basic needs. Government benefits would be reduced if the child received and used the money for food, clothing or housing.
