Many times parents tell the siblings on a special needs child that from their own inheritances, they must provide money to their sibling with child with special needs. This is not a solution that will protect a child with special needs after the death of the parents! There must be formal planning and assets set aside for the special needs child. Remember…your other children may have their own family expenses and financial issues. This does not ensure that special needs child will get the help they need.
It is important for the parents of a disabled child to provide clear instructions and a legal documentation that will lessen the burden on the family and create a plan that makes sure the family will understand how to help care for the loved one with disabilities.
It is important for advanced special needs planning! None of us know when we may die or become incapacitated. It is important to plan early, just in case something should happen to you earlier than you expected! If there is not a special needs trust set up before parents die, the child with special needs may never be able to compensate for a failure to plan. Special needs beneficiaries cannot directly receive an inheritance without possibly losing their state and or federal benefits which may be critical for their quality of life and medical needs.
A properly designed special needs trust promotes the comfort and happiness of the special needs beneficiary without sacrificing eligibility of government benefits. These government benefits can include medical and dental expenses, necessary or desirable equipment training and education, housing, transportation and an allowance for food.
If this special needs trust is properly funded, the disabled person also can receive funds to be used for quality-of-life-enhancing expenses. The state and federal laws or rules can change so once a trust is set up, it is important for the assigned trustee to continually seek the advice of an elder law attorney when administering a special needs trust.
LA LAW Center, PC is happy to discuss your family situation in a free consultation. Please call (818)241-4238.