The legacy that parents leave their child can impact generations. This is especially true when navigating the challenges of planning for the inheritance and financial security of special needs children. Finding an attorney with experience, care, and understanding of the many nuances required to establish a special needs or supplemental needs trust can be challenging.
Here are three things that every family should consider when planning for their special needs child.
Protect Government Benefits Eligibility
One of the fears parents face when thinking about how to best provide for their special needs children is that any inheritance left to their child will affect their eligibility to receive government benefits because of income level qualifications. People who qualify for government benefits due to their special needs identification receive funds designated for expenses including shelter, food, clothing, and transportation. With these basic needs being met, a special needs trust allows for supplemental needs to be paid for, such as out-of-pocket medical expenses, educational expenses, paying caretakers, and equally important – the additional costs to live life to its fullest including recreational pursuits and vacations.
A special needs trust can give parents the peace of mind knowing their child is not only provided for adequately, but their government benefits are protected.
Bequeath Equitable Inheritance for All Heirs
In our experience crafting custom solutions for families’ estate planning needs, we have come across individuals who had previously been advised to disown their special needs children to avoid disruption to government benefits which would lead to lopsided inheritances and potentially hurtful discriminations. This advice is simply not in your best interest. The fallout that families can experience throughout the probate process is unfortunate enough without adding unnecessary strain. Because of the protection a special needs trust provides, there is no reason not to leave money and assets to a differently-abled child.
By choosing to establish a special needs trust, parents can address each of their children in their will and other estate planning documents equitably.
Appoint Trustees with Care
No one will love your child like you do, and no one will make the exact same decisions for their well-being that you would make. However, parents of special needs children don’t have to feel helpless. As part of the special needs trust process, parents (the “Grantors”) will select a Trustee or Guardian for their beneficiary who will be responsible for overseeing the care of the inheritor and the management of their assets. Some parents will choose a family member for this role while others elect to use professional trustees for this service. Your estate planning attorney should prioritize taking the time to walk your family through the pros and cons of all options.
Whether parents appoint their child’s sibling or another member of the family to have this privilege, or they decide what’s right for their family is to hire a professional trustee to best manage the special needs trust, parents can take comfort in knowing their child’s well-being will be handled with care even after they pass.
The estate planning process can be emotional for many families. This is especially true of for parents with special needs children, so it is important that you work with an attorney that understands your desired outcomes and how to set-up a trust that will ensure that your assets are protected and distributed effectively
