A Brief Overview of Special Needs Planning

First off, what is Special Needs Planning?

Often times, it refers to Estate planning done by parents who have children with special needs, but can also include but not limited to: an individual with special needs coming into an inheritance or winning or settling a personal injury claim, or one spouse planning for a disabled spouse.

Some questions that arise that lead families to explore Special Needs Planning are:

• How do I leave funds for the benefit of an individual (child or adult) without causing them to lose important public benefits?

• How do I make sure that the funds are well managed?

• How do I make sure that other family members are not over-burdened with caring for the loved one in who has needs?

• I want fair terms of distributing my estate between my child with special needs and my other children?

• How do I make sure there’s enough money to meet my child’s needs after I am gone?

Don’ts…

Leaving your complete estate to your other children, leaving nothing to the child with special needs.

Some parents may do this because they think that the child with special needs can’t manage money and/or would lose public benefits. Some parents also assume that the child with special needs doesn’t need any inheritance because he/she will be taken care of by the public benefits or the siblings.

Do…

Entertain establishing a “Special Needs Trust.” This ensures funds will be well managed for someone who may not be able to do so himself or herself. It also preserves the beneficiary’s eligibility for public benefits.

What is a a trust? A form of ownership of property, whether real estate or investments, where one person – the trustee – manages such property for the benefit of someone else – the beneficiary.

For more information about special needs planning in general and special needs trusts in particular, contact Legally Remote, PLLC today.