Top Estate Planning Tips for Loved Ones with Special Needs

Having a family member or loved one is difficult enough, and adding in the concept that there will be significant changes after you death can make it appear very daunting. Here are some tips thought to make the strenuous time a bit less problematic.

• Avoid disinheriting the special needs beneficiary.
  • Many disabled citizens receive government benefits and therefore families are told to disinherit them so that they may continue to receive them. A special needs trust is a much more viable option.
• Procrastinating can be costly.
  • Creating a trust early on makes it possible that special needs loved ones do not inadvertently inherit assets that disqualify them for government benefits.
• Do not ignore the special needs of the beneficiary when planning.
  • A properly designed special needs trust promotes the comfort and happiness of the special needs beneficiary.
• Choose a trustee wisely.
  • A group of advisors rather than a single trustee could be more stream lined for the benefit of the special needs beneficiary.
• Invite others to contribute to the special needs trust.
  • New rules for trusts now allow others such as grandparents to help fund special needs trusts.
• Avoid relying on siblings to use their money for the benefit of a special needs child.
  • Assets or funds handled by a sibling outside of a special needs trust could be lost to a lawsuit against the sibling or if the sibling divorces. If the sibling dies or becomes incapacitated, there are no built-in mechanisms for handling those finances for the surviving special needs child.

See Kara Gansmann, Top Estate Planning Tips for Loved Ones with Special Needs, Wilmington Biz Insights, July 2, 2018.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.