Funding a Trust

Funding a Trust2019-12-06T08:41:06-05:00
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Four Basic Ways to Fund a Trust

So you and your family are investigating establishing a Special Needs Trust (SNT) for a loved one, but are not sure where to start or what options may work for your family. You are not alone! Many families are faced with the same question of how to fund a SNT for their loved one.

The information and scenarios on this page are an effort to provide you and your family resources and ideas, not guarantees or legal advice. ACT recommends discussing legal and financial matters with your attorney, financial or estate planner as appropriate.  

Ways to fund a third or first–party special needs trust

Issues to Review

There are a variety of important issues an individual and family need to considering when establish a trust. Below are just a few items that you should be aware of and consider in your planning process. You may have specific issues that are not addressed here, we advise you to contact ACT or your attorney for clarification.

Will or Trust?
Public benefits
Pay Back Provision
Need an Attorney?
ABLE Account

Sample Funding Scenarios

Following are a few general examples of common family and individual situations. This is not an exhaustive list. Your situation may have unique issues and may not be reflected in the scenarios provided. There also may be real property or other assets needing attention. ACT is happy to discuss your situation and assist you in developing your plan as well as connecting you to appropriate professionals when needed.

Our hope is that the following scenarios help you and your family gain a better understanding of how a SNT can be funded.

Minimal or no financial resources available
Limited family funds, child receives settlement
Family and adult child have financial resources
Settlement for individual of modest amount
Settlement for individual of small amount

The scenarios provided are not an exhaustive list of examples, they are simply a few typical situations many families find themselves. ACT staff are available to address questions and concerns as well as assist you in identifying professional assistance when appropriate.

We hope these scenarios provide you with some ideas on how you, your loved one and family can plan for the future. Contact us today to see how ACT can play a role in enhancing the life and provide greater peace of mind to the beneficiary, you, your family and others responsible for their welfare.

ABOUT US

In 2001 ACT was incorporated as a non-profit charitable organization in Pennsylvania for the purpose of administering a pooled special needs trust for the benefit of individuals with disabilities.  Over the years ACT also became Trustee for other special needs trusts, including Third Party Special Needs Trusts, which are funded with the assets of someone other than the Trust Beneficiary; Non-Pooled Special Needs Trusts, which are funded with assets belonging to the Trust beneficiary; and, educational special needs trusts.

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