Special Needs Planning
What do you need to know?
Statistics show that over 56.7 million people in the United States alone have disabilities! That is nearly 1 in 5 people. So it is not uncommon to have a special needs person in your family. But what do you need to be aware of? Unfortunately, many families are unaware of the fact that Will planning is not enough when it comes to planning for your special needs family member. What is needed?
Special Needs Trust
How does a Special Needs Trust address the situation? It allows parents, grandparents or guardians to provide funds to the special needs individual without disrupting their government benefits. This is a big deal to a special needs individual. The last thing that they want to lose is their much needed health care. So it is very important to plan wisely for this type of situation.
What can you do with a Special Needs Trust?
Appoint a Guardian for your child
Appoint a Trustee to manage their assets and supervise their financial affairs
Leave personalized instructions for the benefit of their education, housing, personal and emotional needs
This Trust may be funded by the parent during his lifetime or after his death by making the Trust the beneficiary of his Will or Trust. It can also be funded by a life insurance policy on the life of a parent. The parent can purchase the policy and name the Special Needs Trust as the beneficiary of the insurance funds.
The Trustee of the Special Needs Trust can use the money in the Trust to provide for the child's supplemental or special needs during his lifetime. The Trust Agreement can provide that upon the death of the incapacitated person, whatever remains in the Trust be distributed to whoever the parent names as the remainder beneficiary of the Trust.
Each family has unique circumstances, which is why it is beneficial to sit down with an estate planning attorney to discuss your families needs. At Schneider Rasche LLC, we are committed to helping each family to draft an estate plan that will cover all of your needs. Call us today at (503) 241-1215 or contact us online to find out how to start your estate plan.
Estate Planning Article
This report is compliments of Schneider Rasche LLC and was written by The American Academy of Estate Planning Attorneys.