Each situation is unique. Following are several questions and answers about this planning tool. It is a document designed to protect the legal rights and assets of a physically or mentally disabled family member. Model trusts are available at little if any cost. I urge readers to talk to a professional who does this full time.
Adequate funding is crucial.
If possible, however, the trust should remain unfunded until the parent's or guardian's death, says Stevens. There are good reasons for this. Second, because the trust is irrevocable, assets placed in the trust cannot be removed. Their wills should exclude the disabled individual from a direct inheritance. Otherwise, the government could come back and reclaim past Social Security and Medicaid benefits, as well as deny future benefits.