While estate planning is essential for any family, it can be even more of an urgent undertaking when a child with special needs is involved. Through various estate planning tools, parents of a child with a disability can plan for the long-term care and financial support of their child.
A comprehensive estate plan should address the unique challenges that parents of children with special needs face. By understanding all available options, parents can create an estate plan that can provide greater peace of mind for the entire family.
Special needs trusts
As the name suggests, a special needs trust (SNT) is an estate planning document that secures financial resources specifically for individuals with special needs. A great incentive to establish an SNT is the fact that it helps ensure that a child with special needs receives ongoing financial support without jeopardizing their eligibility for government benefits.
A special needs trust can either be funded by a child’s own inheritance or through ongoing contributions from a parent or grandparent. By securing eligibility for government benefits, an SNT can help ensure that the funds in the trust are used for supplemental needs, such as:
- Medical care not covered by insurance
- Educational expenses
- Quality-of-life improvements
Parents can choose to establish an SNT during their lifetime or upon their death with the child’s inheritance.
Guardianship and conservatorship
Another way to help secure long-term care and financial support for a child with special needs is by establishing guardianship and conservatorship. These opportunities are especially beneficial for children who have disabilities that compromise their cognitive capacity.
By appointing a trusted conservator to take care of the child’s financial affairs, there is a lowered risk of financial manipulation from strangers or estranged family members. A guardian, on the other hand, can help ensure that a child with a disability isn’t overwhelmed by all the healthcare decisions they have to make, even as they approach adulthood.
Estate planning for families with a child with special needs requires careful consideration and the use of specialized tools to help ensure their continued care and financial support. By incorporating special needs trusts, guardianship and conservatorship arrangements into an estate plan, parents of a child with special needs can create a more robust framework that addresses both immediate and long-term needs. Consulting with an experienced legal team is essential to tailor these tools to the family’s unique circumstances, potentially providing peace of mind and security for the future.
