Parents who want to leave property and investments to their children can utilize general estate planning tools to distribute their assets upon their death. However, families who have children with special needs require an estate planning device that ensures their disabled child is protected once they enter adulthood, both while the parents are living and after they have passed away. If you have a disabled child, an estate planning device you should consider is a Special Needs Trust. Many national associations that provide support to families with special needs children, such as the Autism Society of America, recommend using a Special Needs Trust as part of your estate plan.
What is a Special Needs Trust?
Under the current Social Security public benefits system, a disabled individual is eligible to receive government assistance to provide for basic needs such as food, clothing, health care, and shelter. To receive assistance, a recipient cannot have more than $2,000 in cash and assets in their name. A Special Needs Trust is a legal document that allows a person with a physical or mental disability to have, held in trust for his or her benefit, an unlimited amount of assets without jeopardizing state or federal benefits. If monies are placed in a Special Needs Trust they are not considered part of your child’s assets and your child can still qualify for all benefits and programs.
Why Alternatives to a “Special Needs Trust” May Lead to Catastrophe for Your Child
Regardless of the size of your estate, leaving all of your money to a relative to care for a disabled child is risky. When an individual holds those assets, they may be spent, ill-managed, or attached by judgment creditors. But a Special Needs Trust guarantees that the funds will be held only for the benefit of your disabled child. Judgment creditors of the disabled child or of a caretaker cannot attach money in a Special Needs Trust.
How Your Child Can Benefit from the Funds in the Trust
The money in the Special Needs Trust can be used to pay for a number of things, including vacations, care-giving services, and even a home for your child. Plus, it will provide you with the peace of mind that your child’s access to vital government services and benefits is not threatened.
Contact San Diego Law Firm to Set Up a Special Needs Trust for Your Child
A Special Needs Trust, like all trust and estate planning documents, must be drafted precisely to be valid. In an age when technology makes us feel empowered to take matters into our own hands, legal planning for the future of a disabled child is not something you should try to accomplish on your own. A Special Needs Trust requires specific language, and if it is poorly crafted it can cause your child to lose benefits and health care he or she would otherwise be entitled to. Our estate planning attorneys at San Diego Law Firm are familiar with the public benefits system, and can prepare a Special Needs Trust that will accomplish the purposes you intend. They can also integrate it with your will, living trust, and other estate-planning documents, so that it operates exactly as you intent. For more information or an appointment, please call us at 619-794-0243.
