How to Create an Estate Plan for a Special Needs Child
If something unfortunate should ever happen to you, you want to make sure your special needs child will have the right care. Proper planning is essential because a traditional inheritance can put your child in jeopardy if public assistance is needed in the future. Here are three tips to help you create an estate plan for a special needs child.
Set Up a Special Needs Trust
A special needs trust is designed to protect an individual with a disability from losing eligibility for benefits from the government. Any money placed in this trust can be used to pay for personal expenses without being counted against your child’s personal assets. Setting up this trust as part of your estate plan can ensure your child is financially secure in the event both parents die. In order to set up this trust, you will need to appoint a trustee to oversee the management of funds. There are a few types of special needs trusts, depending on your specific needs.
Choose a Guardian
A guardian can help manage the trust and ensure every need is met for your special needs child. Choosing the right person can be complicated due to the extra physical, financial and emotional energy needed for proper care. You can choose multiple people you trust for guardianship needs. When creating your estate plan, make sure to leave detailed instructions regarding medical history, financial accounts, benefits and any final wishes you may have.
Minimize Tax Implications
Tax implications can occur when assets are transferred to your special needs child after you and your spouse die. There are various strategies you can employ in your estate plan to minimize these implications. An experienced estate planning attorney can help recommend the best option for your unique circumstances.
Estate Plan Legal Advice for Special Needs
Failing to create an estate plan for your special needs child can create numerous problems in the future. Crucial decisions could be left in the hands of a judge with no clear knowledge of your child’s situation and needs. Turner Law can help you navigate the estate planning process to give your child the best future possible after you are gone. Call to schedule a consultation appointment today.
Posted on the behalf of Turner Law, LLC