Estate planning for a person with special needs can be a difficult task. It is important to make sure that all essential estate planning documents are kept up-to-date. Consider creating a special needs trust which will permit a disabled beneficiary to inherit assets without jeopardizing their eligibility for government benefits. The policies for drafting and administering SNTs as well as the eligibility requirements are different in each state. It is a good idea to appoint both a corporate and family trustee to administer the funds of the trust. The SNT needs to be named as the beneficiary of the inheritance. Make sure that the legal documents dealing with advanced directives and guardianship issues are kept current. Policies are different in each state so it is a good idea to speak with an experienced estate planner for personalized advice.
See Lauren I. Mechaly, Robert M. Freedman, and Barry I. Lutzky, How to Plan for a Loved One with Special Needs, The National Law Review, December 29, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
