Future.

For families with special needs children, estate planning can be rather complicated. This is because the usual estate planning instruments may not address the unique needs of a special needs child and can even jeopardize their access to government benefits. Here are essential considerations when drafting an estate plan.

Guardianship Designation

Determine who the child’s legal guardian will be in the event that you are incapacitated. You can also express your wishes for the child’s future and let the guardian know what to do if you are unavailable.

Special Needs Trust

Government benefit programs for special needs usually have strict asset limits. This means children who have access to assets above the set limits can be disqualified from accessing critical benefits. A Special Needs Trust (SNT) is a legal arrangement where designated assets for the child are held by a trustee and not directly by the beneficiary. The primary purpose of SNTs is to prevent disqualification from government benefit schemes. As such, the assets under the trust cannot be used to pay for basic needs like food and shelter. However, trustees can use the assets to improve the beneficiary’s quality of life by providing for things like travel, recreation, equipment, and entertainment.

Life Insurance Policy

It is not advisable to take a life insurance policy for a special needs child. Means-tested benefits typically look at a beneficiary’s total assets to determine eligibility and would consider the surrender value of the life policy as part of the child’s assets. Instead, consider having the child as a beneficiary in a policy owned by a parent or guardian. Alternatively, name the child’s Special Needs Trust as the owner and beneficiary of the policy.

We Can Help

At O’Brien Law Firm in Southaven, MS, we understand the intricacies involved in legally safeguarding the future of special needs children. Our attorneys are ready to help you through the entire process and ensure your child’s well-being is protected when you are gone. Call us today to book a free consultation with one of our lawyers.