For families that include an individual with special needs, life can be incredibly complex. This added complexity has a direct impact on estate-planning needs. For these families, there are certain measures that should be considered when developing an estate plan. Among them are: 1) preparing a letter of intent, 2) setting up a special needs trust, 3) creating a plan that avoids court intervention, 4) choosing a trustworthy trustee, and 5) considering setting up an exempt trust. It should also be noted that any funds held by the disabled individual should be kept entirely separate from any third-party funds. By isolating these funds, state rules demanding payback at the beneficiary’s death for the total cost of benefits will attach only to funds held by the individual.
See Robert M. Freedman & Alexis R. Gruttadauria, 10 Estate Planning Tips for Families with Beneficiaries with Special Needs, Schiff Hardin, May 3, 2018.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.
