According to a recent survey, many parents with special needs children have not secured their child’s financial future. Statistically, 66% of parents do not expect their child with special needs to be financially independent, and 68% of parents with special needs children do not have a will. Estate planning is essential for parents with special needs children. Outlined below are five simple steps that will help you plan for your child’s future:
- Children with special needs should not be a “direct beneficiary” of a will or trust [they may be disqualified from receiving federal and state aid].
- A special needs trust should be established in order to make sure that certain designated money or property will be used for your child’s best interest.
- In many cases, a legal guardian should be appointed for any special needs child that turns 18 years old. Once a child turns 18 years old, they are considered an adult.
- A special needs trust should be established in order to protect your child’s eligibility for state and federal aid.
- With proper planning, a life insurance policy can ensure your child will be financially secure. A gift of money or property to a child with special needs should go directly to that child’s special needs trust. If a child with special needs is the direct beneficiary of any type of money or property, they may become ineligible for state or federal benefits.
With proper estate planning, you can secure your child’s future. For more information on special needs trusts, please contact us.