When someone passes away in Florida, their estate often has to go through a legal…
Estate Planning for a Child With Special Needs
If you have a child with special needs, you will require expert advice in estate planning. Looking to the future and determining how your child will function in the world as they age can be particularly tricky to assess.
Important questions may include: What is the child’s long-term prognosis? What type of care will meet their needs? What medical breakthroughs may occur that could change their circumstances?
Parents and guardians must also consider what government programs their child may qualify for when they turn 18. They should also consider whether those programs will remain available when their child needs them.
The estate plan may also need to change when a child turns 18 and may want, and be legally able, to make some decisions on their own.
Planning for Your Child’s Future Needs
Setting up the best plan possible for a special needs child can feel like a daunting proposition for parents or guardians.
Can the child express their needs and wants regarding their care? Most state laws require the fiduciary responsible for a special needs child’s care to allow their participation in the process as much as they are able.
Families should also consider questions about their child’s future abilities and independence:
- Can the child manage activities of daily living like eating, bathing, and dressing?
- Will the child be capable of working outside of the home?
- Can the child ride a bus to work?
- Will outside care, such as an assisted living facility, become necessary?
- Can the family provide income and assets for the child’s future well-being?
The Importance of Flexibility in Special Needs Estate Planning
Flexibility is the key to success when creating an estate plan. A plan created today may need adjustments in the future because of unexpected changes in a special needs child’s abilities, desires, or government assistance programs.
Government assistance may not be required if sufficient assets can support the child through a discretionary trust. The appointed trustee can manage distributions throughout the child’s life based on their needs.
Using a Special Needs Trust to Protect Benefits
If your child is likely to receive government benefits, a special needs trust can be a good strategy. The trust can supplement what government benefits already provide.
It is crucial that the special needs trust follows the required rules. This helps ensure the child does not become ineligible for their government benefits.
In some situations, it may not be possible to predict whether a child will qualify for government benefits. In these cases, an already established trust can give the trustee the ability to create a special needs trust when the last surviving parent passes away.
Whether a trust receives funding now or remains empty until the parent’s death is a matter of preference. Later, money can flow into the trust from the estate, another trust, or a life insurance policy.
Why Disinheriting a Child With Special Needs Can Create Problems
Some parents choose not to create a trust for their special needs child. Instead, they completely disinherit them so government benefits can solely support the child.
However, the absence of clear financial support instructions for a special needs child can create lasting negative impacts on the child’s financial and emotional well-being.
Fortunately, most parents of special needs children try to provide additional support for their child’s future rather than take the approach of providing no aid whatsoever.
Creating a framework with legal documents that define the rest of a special needs family member’s life can help ensure that the family member receives financial and medical care.
Protecting a Loved One With Special Needs
Estate planning for a child with special needs requires careful consideration of future care needs, government benefits, financial support, and legal protections.
If you have any questions or would like to learn more about how to protect a loved one with special needs, please contact our office at (352) 565-7737.
