Special Needs Trust
Discover how special needs trusts protect disabled individuals' government benefits while providing supplemental support. Learn eligibility rules and funding...
Can I fund a special needs trust with life insurance proceeds?
Yes, life insurance proceeds can fund a special needs trust, making it a popular estate planning strategy for parents of disabled children. The trust becomes the beneficiary of the life insurance policy, and upon the policyholder's death, the proceeds flow into the trust without affecting the beneficiary's government benefits. This approach provides long-term financial security while preserving eligibility for SSI and Medicaid. Many families choose this method because it requires minimal upfront funding while the parents are alive.
