When you think of special needs planning, you probably focus on financial assets like cash, investments, and real estate. However, non-financial assets can also play a significant role in securing the well-being of your loved one with special needs. In New York, you can include these non-financial assets in your special needs plan to enhance the overall strategy and improve the quality of life for the person with disabilities.
What are non-financial assets?
Non-financial assets hold value but cannot easily convert into cash. These assets include personal property such as furniture, vehicles, artwork, and collectibles. Intangible items like life insurance policies, intellectual property, and legal rights also fall under this category. While these assets may not offer immediate cash value, they can support your loved one’s needs and future goals.
How can you use non-financial assets in special needs planning?
Non-financial assets can play an essential part in your special needs plan, as they provide both personal and financial value. For example, you can transfer a vehicle to the person with special needs or use it to fund a trust for future transportation expenses. You can also structure life insurance policies to create a reliable income source for the beneficiary. If the person with special needs owns valuable personal property, you can include it in the trust to protect its value and ensure it doesn’t affect their eligibility for government benefits.
How do you manage non-financial assets in a special needs plan?
Managing non-financial assets in a special needs trust requires careful planning. Start by evaluating whether these assets might affect eligibility for programs like Medicaid or SSI. If you transfer non-financial assets to a special needs trust, the trust should protect those assets from influencing government benefits, as long as it’s structured correctly. Also, appoint a trustee who understands how to manage and allocate non-financial assets according to the beneficiary’s needs.
Non-financial assets can play just as important a role as financial ones in a well-rounded special needs plan. They help create a secure and comfortable future for your loved one with special needs while complementing the financial components of the plan.