As a parent who has a child with developmental disabilities, you should know that there are several options available to you to help protect your child should something happen to you. Special needs planning is the term that applies to a range of situations, but most often in cases where a parent has a child with a disability. Here are some of the basics you need to know about this kind of planning.
Special Needs Trust
Parents with a special needs child can create a special needs trust, a specific kind of trust that allows the parent to leave the child property, while at the same time appointing a trustee to manage the trust and giving the trustee the power to ensure the child’s needs are being met. Special needs trusts are also beneficial because the property the trust owns will not be taken into consideration when applying for either Social Security Supplemental Security Income or Medi-Cal. The trust preserves the child’s ability to receive public assistance while at the same time providing the parent with greater security in knowing that the child’s needs will be cared for.
Many parents with children of special needs often find it difficult to put aside money for the child’s future and will worry that the child will be left without suitable resources. One common way special needs planning deals with this issue is by finding a life insurance policy that will meet the financial abilities of the parent and the needs of the child. A good policy will need to fit your personal financial requirements, but there are several types to choose from.
Planning for a child with special needs can be very challenging due to their medical issues and the complex web of state and federal laws that provide benefits to them. The best way to start this process is to consult with an experienced and qualified estate planning attorney whose practice includes special needs planning.