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If for some reason the person does not share the money, then your child with a disability could lose a major source of financial support.
You may establish a trust for your child with a disability. A "special needs trust" is an arrangement where a legally responsible person (known as a trustee) manages assets placed in trust for a beneficiary (such as a child with a disability). The trust must be carefully written by a lawyer who specialized in special needs trusts. A good trust gives the trustee pure and absolute discretion whether to pay the beneficiary, and, if so, how much to pay. The trust should mention your child's unique needs, designate who gets what is left over when your child dies, name back-up trustees, and other specific details. A trust may begin upon your death (testamentary trust) or during your life (intervivos trust). Trusts may be supplemental (to provide for items not covered by government benefits, thus safe guarding SSI and Medicaid benefits) or discretionary (where a trustee decides how money should be spent).
Local banks can manage trust: however, few will if funds are under $200,000. Some disability-related organizations have set up cooperative master trust, an umbrella of smaller trusts managed by the organization that also advocated for the child. A good concept, cooperative trusts have generally not been successful because of staff turnover and other problems.
Guardianship. A guardian designated in a will is valid only for minor children. Guardians or conservators for adults with disabilities must be appointed by a court. Generally, guardians are legally required to look after a person's physical, emotional, and financial well-being, while conservators are legally responsible only for financial affairs. A guardian or conservator should be someone your child is comfortable with and who has the ability to invest assets and manage property. Guardianships and conservatorships can also be limited, full, or temporary-the court makes the final decision on which arrangement is appropriate based on the capacity of the person with a disability to make decisions.
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