Estate Planning With a Special Needs Child
Parents of a child with special needs have extra challenges to consider when they begin planning their estate. There’s a question that lingers with every decision they make—what will happen they can no longer provide daily support? A thoughtful estate plan built with the help of an estate planning attorney in the Inland Empire can make it easier to answer this question.
The team at Moga Law Firm has helped many California residents build personalized estate plans that address their unique needs and goals. Attorney Scot Thomas Moga has spent 30 years representing clients in many areas of law, and his extensive knowledge of estate planning allows him to address the concerns you have for your child’s future. Find out how our California estate planning law firm can help you by calling us at 909-931-2444 now.
Why a Will May Not Be Enough
When you have children who live independently and do not receive any government benefits, passing your assets to them is fairly straightforward. However, when you have a child with special needs, you have to consider how an inheritance could impact their eligibility. Many public benefits are only available to individuals who meet strict resource limits. The inheritance you leave your child could be enough to cause them to lose health care, housing, food assistance, and other benefits they depend on to live.
By planning ahead and working on a special needs trust with an estate planning lawyer, you can protect their benefit eligibility while still using your assets to enrich their life.
Understanding Special Needs Trusts
A special needs trust holds assets for a person with disabilities. Rather than giving money directly to a beneficiary, the trust is managed by a trustee. The trustee can then use the funds to pay for the individual’s supplementary needs without impacting their eligibility for benefits.
An individual with special needs may be able to access therapies, education supports, transportation, recreation, technology, personal care items, and other quality-of-life needs with a special needs trust.
Distributions have to be handled carefully, as certain payments can affect SSI, housing, and other benefits.
Choosing a Trustee
The trustee plays a critical role, which is why your estate planning attorney will walk you through the process of naming an appropriate trustee. The person or institution named will manage the trust, keep thorough records, make distributions, communicate with caregivers, and protect benefit eligibility.
When choosing a trustee, look for someone who is responsible with money, willing to follow rules, and calm under pressure. They should understand the strict regulations affecting the trust and the individual’s eligibility for benefits. They should also be comfortable working with benefit agencies, tax professionals, caregivers, attorneys, and medical providers.
You may want to look into trusted family members, professional fiduciaries, or a close family friend with experience in caring for individuals with special needs.
Naming Guardians and Future Caregivers
Beyond the special needs trust, you can also work with your attorney to name a guardian to provide care should both parents no longer be able to provide care. The person you name may be appointed by the court to handle daily care, housing, school, and general upbringing. It’s important to discuss this with the intended guardian before naming them. They should understand the responsibility that comes with the role and be fully willing to take it on.
CalABLE Accounts and Their Role in Estate Planning
CalABLE accounts allow individuals with disabilities to save for certain disability-related expenses without losing their eligibility for public benefits. A CalABLE account can be useful for small savings, day-to-day flexibility, and general independence. Note, though, that it’s not a substitute for a special needs trust. If you plan on leaving your child a larger inheritance, life insurance proceeds, real estate, or any assets that are meant to support them throughout their lifetime, a trust is very important.
If you aren’t sure whether or not a special needs trust is necessary in your case, your attorney can guide you to the right solution for your child’s specific needs.
Create an Estate Plan That Sets Your Child Up for Long-Term Success with Our Estate Planning Law Firm in California
Our estate planning law firm is committed to helping you find the right structure for a plan that supports your child for the rest of their life. Schedule your consultation now by calling us at 909-931-2444 or contacting us online.
Scot Thomas Moga, a dedicated attorney in San Bernardino & Riverside Counties who represents clients in the many types of personal injury, workers’ compensation and estate planning cases.
