Planning for the future of a disabled child is an essential aspect of estate planning that requires careful consideration and strategic decision-making. If you are a parent or guardian of a disabled child, you need to ensure your child’s needs are met, during your lifetime and after your passing, which is often the source of anxiety for many parents who find themselves in this situation.
Special needs trusts
One of the most effective tools for providing for a disabled child is a Special Needs Trust (SNT). This type of trust allows you to set aside funds for your child’s care and support without jeopardizing their eligibility for government benefits such as Social Security Income (SSI) or Medicaid.
An SNT can be funded with assets from your estate and the trustee can use the funds to cover expenses that are not paid for by these benefits, such as education, therapy or recreational activities.
Designate the trustee
Choosing the right trustee is a very important decision, so you need to think long and hard about who you would entrust your child with. The trustee will be in charge of managing the trust’s assets and making distribution for your child’s benefit.
Now, whether you choose someone who will distribute assets when your child requests them or someone who plays a more authoritarian role is up to you, but you should make that decision based on your child. You know them best. You will know if trust can be extended to them to know what is in their best interests.
Create a comprehensive will
In addition to a special needs trust, it is important to create a comprehensive will that outlines your wishes regarding your child’s care. Specify who will be the guardian of your child if you are no longer able to care for them. This is a critical decision that should not be taken lightly, for the reasons stated above.
In conclusion, there are many estate planning tools you can use when putting together a solid estate plan that includes protection for your child. Speak with your estate planning attorney to have a better idea of your options and select what works best for you, your child and your family.