
Naming a Special Needs Child as a Beneficiary of an IRA or Retirement Plan in a Trust
Leaving behind assets to benefit a child with special needs requires careful planning to protect their needs-based government benefits. It is also important to protect those assets against later claims after your death and, in some cases, during your lifetime, for additional available public benefits such as Medicaid. Many parents choose to set up a special needs trust for their child with a disability, but can you put beneficiary-named accounts in this trust? A lot of wealth may be in your IRA and 401(k) that requires naming a beneficiary. Know the risks when naming your special needs trust as a beneficiary of your retirement accounts.