Whenever you have a child with special needs, most regions of your life need extra planning and exceptional arrangements, along with your succession plan is no different. If your child receives government benefits, you know that there is a limit to the amount of resources that you are allowed to have and receive the conversation today for those rewards.
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Part of having a good estate plan whenever you have a child with special needs is creating structures for your child to inherit his share of your property, minus the profits he depends on. Without careful planning, your son or daughter could inherit your resources, pushing them past the eligibility threshold, leading to ineligibility for benefits before the inheritance is fully spent on health care.
How can you plan so there are no gaps in benefits, so that your child's partner is spent on things that improve his or her own life, rather than on critical medical services covered by SSI and Medicaid? Meet with an estate planning attorney to establish a Special Needs Trust on behalf of your son or daughter.
A Special Needs Trust must be carefully established to be within government guidelines; otherwise, you may make your child ineligible for benefits. Basically, it is an irrevocable trust with a third party acting as trustee, and it is created specifically to provide your disabled child with additional "contingencies" that are not covered by government benefits.
When done right, you can structure the Special Needs Trust to continue to provide the things you currently provide for your son or daughter. Items ranging from your favorite foods and toiletries to instructional materials and travel classes.