As you work on your estate plan, something that you may want to include is special needs planning. If you have a child or dependent that turns to you for support due to a disability, then special needs planning is essential.
It’s a good idea to do any special needs planning you need to do as soon as you can. For example, you may want to set up a special needs trust for your child or another person with a disability. You may want to select a guardian or make preparations for when your child reaches adulthood.
One of the excellent tools you can add to your estate plan is a special needs trust for any settlements your child may receive. For instance, if you were all involved in a car crash that left your child with injuries or disabilities, you may want to set up the trust to hold those assets.
Doing this can help your child remain entitled to any needs-based government benefits they receive without interruption. A special needs trust is specifically designed to provide long-term benefits to your loved one. The primary goal is to provide them with this additional support without threatening their right to public access programs that they may need now or in the future. Money put into a trust like this won’t count as assets and money disbursed from it in the proper fashion won’t count as income to your child, making it easier for them to qualify for Medicaid, Supplemental Security Income and other programs.
Our website has more on preparing your estate plan and how a special needs trust could offer benefits for your child or dependent in the long term. Speak with an attorney who understands special needs trusts and planning to learn more.