Life with a child who has special needs requires planning and organization. The efforts are never more important than when preparing for the day when the child no longer has their parents to rely on. All parents worry about what will happen when they are not there to protect their children, but estate planning makes it possible to continue to support and protect a child after the parents are gone.
Find All Benefits
The cost of education, medical expenses, and equipment quickly drain the bank accounts of parents raising a child with special needs. Research all benefits available locally, at the state level and through the federal government. Programs like these were established to enable people to get their children the help they need without sacrificing their own comfort or safety.
The California Childcare Health Program helps families to identify when their children may need special assistance. They provide important information about the legal rights provided to individuals through The Individuals with Disabilities Education Act and The Americans with Disabilities Act. The program can also it easier for struggling, young families to locate the financial help they need.
Have Open Discussions
The siblings of a child with special needs should understand that their brother or sister will always require a higher level of care. Honesty from the start helps to avoid any family strife when an estate is divided in the future.
You can’t know for sure if adult children will follow requests, so giving all the responsibility of caring for the sibling to another child after the death of the parents can backfire. Without the right legal guidelines and protections in place, a parent cannot guarantee the caregiver will use inheritances to provide the services their sibling needs. There is also no guarantee that one sibling will outlive another.
Learn About Trusts
Trusts allow individuals with special needs, as adults and children, to benefit from their inheritance without losing out on the government benefits they rely on to thrive. A trustee is named when a special needs trust is created and they use the funds in the trust to pay for any items not covered by the insurance or other benefits used by the disabled individual.
Most parents with multiple children will name one of the siblings as the trustee. It is possible to find reliable trustees through trust companies, banks, and nonprofit groups to oversee the use of the funds if a sibling or other reliable family member is not available.
Access Additional Income
Not everyone has enough money to leave their children a large inheritance, but there are ways to make sure the child continues to have adequate financial resources. Establish a special needs trust with a life insurance policy. An additional benefit of this option is that the money is immediately available to aid the beneficiary without any probate delays.
Consider a Pooled Trust for Multiple Children
Special needs pooled trusts are operated by nonprofits and protect the inheritances of multiple-children families. The operators of the trust understand the law, so the money is protected. Fees are involved with this type of trust, and any money remaining after the beneficiary passes away is not passed down but is used to cover previous expenses paid by government programs.
A pooled trust is useful for families with more than one disabled child, as well as when limited funds are available for a trust. A special needs pooled trust reduces the risk that the money may not last long enough. The funds put into the trust are pooled and responsibly invested, so the beneficiary benefits longer from their parent's gift.
Future living arrangements, transportation demands, and the organizing of the parent's final arrangements must also be considered. However, plans that establish how to protect the basic financial requirements of the child are a great place to start. Contact Clara Yang, Attorney at Law to discuss what legal options are best for your family.
