Estate planning is crucial for parents with children with special needs.
Parents want to give support to their children to develop through the years and continue after the parents are gone. Parents with children with special needs have an even bigger challenge, according to the Austin American Statesman in “How to plan your estate when you have a child with special needs“.
In some ways, estate planning for families with neurotypical children is the same. The basics need to be addressed. You need a will, probably a trust, a health care proxy, a financial power of attorney, and a HIPAA authorization.
However, there is one important difference. You need to be sure your estate is structured so that when you pass, an inheritance does not disqualify your child from receiving government assistance, including Social Security.
Special Needs Trusts (SNTs) are created to help families ensure that their special needs children will continue to receive benefits. A traditional estate plan could easily disqualify them.
Families need to think about their assets as well as the needs of their child now and in the future. In some cases, that means the naming of a guardian to take care of the child and naming someone else to be responsible for their finances.
Make sure to speak with the people you select for these roles. They need to understand what you are asking them to do and you need to be certain they are willing to take on these roles. Some families even write a letter to the people they name, to pass on more information. Often the letter includes who the family wishes their child to remain in touch with, or the personal preferences that they know keeps their child comfortable and happy. Some of the letters are highly detailed about finances or food preferences, while others focus on the love they have for their child.
Families with special needs children need to devote the time to planning for their eventual passing. Once the estate plan and special needs trusts are in place, however, you’re not done. Provisions can be included that will address issues as the child ages; however, as there are changes in life, there are also changes in the law so plans need to be reviewed, and possibly revised, every few years.
An estate planning attorney with experience working with special needs families will be able to create a plan that will fit your particular circumstances.
Reference: Austin American-Statesman (Sep, 17, 2018) “How to plan your estate when you have a child with special needs“
