It is never too early to begin thinking about the future and if you have a child with special needs, you must take extra care to plan for their future as well as your own. When planning for the future of a special needs child, there are additional factors to consider on top of traditional estate planning. By utilizing tools such as a special needs trust, you can provide your child with long term care after you pass.
A special needs trust is an essential part of an estate plan that will provide care for your child after you are no longer able to. A trust is an agreement set up between (1) a benefactor whose assets are held in the trust, (2) a beneficiary who receives these funds, and (3) a trustee who oversees the administration of the trust according to the terms set by the benefactor. A special needs trust can be set up to pay for any number of goods and services as you see fit and that may not be covered by public aid.
A central benefit of a special needs trust is that assets placed in a properly-drafted trust will not impact the eligibility of your child for government programs. Governmental programs such as supplemental security income (SSI) and Medicaid are often vital to the financial support and wellbeing of special needs children. These programs have financial limits for eligibility and you must take care that an inheritance does not disqualify your child from receiving the care they need. A skilled attorney in family law and estate planning can help you decide on the type of trust which is right for you.
There are two main types of special needs trusts:
- First-party trust: Funded by assets that are legally owned by your child such as their inheritance.
- Third-party trust: Funded by assets which are owned by a person other than your child such as the parent.
Estate planning is an ongoing process, especially when the care of a special needs child must be considered. As you and your family continue to grow, you will need to update your plan as new situations present themselves. The estate planning attorneys from our firm can use tools such as a special needs trust to ensure that, when you pass, your child will be well cared for.
Compassionate Estate Planning Services
If you are considering creating an estate plan for your special needs child, a Nassau County estate planning attorney from the Davidov Law Group can help you decide on the best options for your family. It is our goal to ensure that when the time comes, your child will be provided with the best care possible.
Call (516)-928-6594 to schedule a personal consultation and talk to an attorney about planning for your family’s future.