Special Needs Planning is Important for Families to Consider

For many families, dealing with a minor child and all of the things that require their attention is a job in and of itself. When it comes to families with children that have a disability, the issues they face are even greater. When it comes to estate planning, special considerations need to be taken above and beyond the basic planning. Parents with a special needs child are no longer just concerned about treating their children equally or protecting a spend thrift child. Protecting the special needs child takes priority. For families that have special need family members that suffer from either Autism or severe cognitive or physical impairment, special planning must be done within your estate plan. A Living Trust is necessary to protect that child’s government assistance and medical benefits. A child receiving government assistance is not allowed to have more than $2,000 in his or her bank account. If at the time of your death your estate leaves that child an outright distribution of assets, that inheritance may affect the government benefits they have qualified for. With special needs provisions within your Trust, you can provide that that special needs child’s portion is held for their lifetime care and benefit. However, the assets are managed and distributed under the discretion of a Trustee. When dealing with children with special needs, of whatever age, it is important that your estate plan reflect and address their needs.