Raising a child with special needs can be challenging for you, them and any siblings they have. Making extra arrangements in your estate plan can go a long way to stabilizing the future for all of you.
If your child outlives you, as they hopefully will, they may need someone to replace the help that you currently provide. Paying for this can be costly. Not being able to afford it can leave the child’s sibling feeling obligated to do all they can to provide it, perhaps at their expense of their own families. It’s not a great situation for anyone.
You need to protect your child’s right to benefits
If you die and leave your money in the bank, the medical providers that go on to provide care for your child could soon swallow it all up. Not only will that leave your child with special needs in a difficult situation, but it could also leave your other children feeling they need to cover additional costs.
Moving assets into a special needs trust can help your child qualify for benefits and safeguard your assets for other costs as they arise. Taking their inheritance out of your estate and out of their direct possession can help them meet the threshold for benefit eligibility. The money will be viewed as belonging to the trust, not them, even though they can still benefit from it according to the rules you set down.
A trust can reduce the chance someone exploits their vulnerability
Not everyone in this world acts as they should. Some can be unscrupulous, taking advantage of people they see as easy targets. Having a trustee look after the money you leave to your child can help prevent someone from taking advantage of them.
Learning more about the legal options available can help you craft an estate plan that best serves your family. Seeking legal guidance accordingly is wise.