Parents of special needs children face many unique challenges. They must balance medical, educational, and social issues in addition to the other normal trials of parenting. Raising a special needs child can also involve a complicated struggle to find the right resources to help the child.
Parents also face financial challenges in caring for a special needs child due to medical bills that may not be covered by insurance, as well as increased educational expenses and costs of therapy programs. For parents who have children who may require care into adulthood, there is the added worry of ensuring their child will be cared for after the parents pass away. As one financial planner notes, parents of a special needs child must essentially plan for three retirements—both of their own and their child’s long-term care.
A special needs trust is an estate planning tool that is available to help parents plan for and protect their special needs child’s future. A special needs trust can preserve government benefits, such as Supplemental Security Income (SSI) and Medi-Cal, for people with disabilities. These benefits have specific financial eligibility requirements. If a person with disabilities receives an inheritance when they reach adulthood, they may no longer be able to qualify for benefits.
A special needs trust is a wonderful way to help provide for a special needs child through his or her adulthood. Under a special needs trust, a trustee (who may be a friend, relative, or the trust department of a bank) is named to hold property for the benefit of the child with disabilities after the parents are no longer alive. The trust is used to provide for various needs of a person with disabilities, without causing them to be disqualified for government benefits and programs. The trust may be funded by the parents’ life insurance policies or with monetary gifts from relatives.
The trust can be customized based on the individual wishes of the family and the needs of the child.
San Diego Law Firm’s attorneys have many years of experience in setting up special needs trusts, and are knowledgeable about the precise legal rules that must be followed. They can create a trust that will permit your child or disabled adult family member to receive all government benefits to which they are entitled, that will fit your family’s needs, and that will help ensure that your special needs child will be protected and cared for in the future. To learn more about special needs trust, and to receive expert legal help in setting up your child’s trust, please call San Diego Law Firm at (619) 794-0243 to schedule an appointment.
