A primary source of stress for families who have children with special needs is worrying about securing their futures. Our goals are help families better understand planning options that are available to help secure the financial future of their children.
- Understanding the full range of planning opportunities that are available;
- See how these strategies might be used to accomplish the family’s planning objectives;
- Remain in control of the development and implementation of a plan that suits their needs.
One strategy that can be utilized is a Special Needs Trust
A Special Needs Trust allows parents to gift assets to a second person, a trustee, to be used solely for the benefit of their special needs child or dependent adult. It is designed to preserve the beneficiary’s quality of life while not interfering with government benefit eligibility, which can be denied if a person with special needs receives an outright inheritance.
Common approaches to avoid:
Do nothing.
Unfortunately, the most popular estate plan in our country is to do nothing. Many people are uncertain about what to do and end up life without a plan. In this case, the State’s probate code dictates what happens and the code does NOT take into account the special needs of relatives with disabilities.
Rely on government benefits.
Many families who have a child with special needs rely on Supplemental Security Income, Medicaid or other government benefits to provide medical care, food and shelter. In some cases, families mistakenly believe that it is best NOT to leave an inheritance to a child with special needs as a way to protect government benefits, but they are missing the opportunity to enhance the child’s quality of life.
Depend on a family member, usually a sibling.
While this option frequently seems like the best idea, there are potential problems that should be considered. Even a well-intentioned sibling has his or her own life to lead. If the sibling were to lose a lawsuit or wind up in financial difficulty, they could be required to use the inheritance to satisfy creditors.