Families with a child who has special needs face unique challenges. Their child often requires more help and resources to meet their needs and these needs often continue throughout their lifetime. Estate planning for a disabled child allows parents to create a financial plan to provide for your child after your death.
For over 140 years, the attorneys at Church Church Hittle + Antrim have provided clients with compassionate and professional estate planning. Our attorneys are here to help guide you through planning for your child’s future.
Estate planning for parents of children with disabilities can be a complex and emotional process. Here are some things to consider as you plan for your child’s future:
A common goal of estate planning for a special needs child is to help the child retain eligibility for important government benefits such as Social Security and Medicaid. These programs are needs-based and eligibility may be impacted by the amount of income and assets your child receives. Your child could lose coverage if their financial resources suddenly increase through a gift or inheritance. Effective estate planning can help you avoid this issue.
Another benefit of estate planning is third-party management. If your child is unable to manage his or her own assets, it may be important to appoint a Trustee or Guardian who can do that for them in your absence. The Trustee will protect, manage, and distribute the trust assets for the benefit of your loved one, whereas a Guardian might have care and custody of your loved one.
When a parent, grandparent, or anyone other than the disabled individual funds a special needs trust, it is a “third-party” trust. If funding is from the disabled individual’s assets, it is a “self-settled” trust. It is important to consider which is the better option for the disabled individual. Depending on how the trust is funded and structured, it may allow a disabled individual to still inherit from a parent’s estate and simultaneously remain eligible for government benefits.
It’s important to consult with a qualified attorney or financial advisor to understand how the specific rules and requirements apply to your situation.
If you have a disabled child, you likely put a lot of time, energy, and thought into caring for them and managing their disabilities. Estate planning for a disabled child is just one more step you can take to ensure that care continues after you’re gone. The estate planning attorneys at Church Church Hittle + Antrim have years of experience helping our clients safeguard their loved ones’ futures. We can help you fund a special needs trust and draft an effective trust document to manage the assets you want to leave your child. Our attorneys will provide the knowledgeable advice you need with the personal touch you deserve. Contact us today to schedule a consultation.