MISTAKE 7: Funding The Trust

A key benefit of creating a Special Needs Trust now is that your extended family and friends can make gifts to the trust or remember the trust as they plan their own estates. You can also consider whether making the trust the beneficiary of a life insurance policy makes sense now, while you are healthy and insurance rates are low.

In addition to the gifts and inheritances from other people who love your child, you can leave your assets to the Special Needs Trust through your own will or family trust. You can also name the trust as a beneficiary of life insurance or retirement benefits. It is imperative, however, that you get professional advice if you have IRA or other retirement benefits you wish to leave to your special needs child.