Planning for your child’s future is important, but it’s even more critical when your child has special needs. Your estate plan needs to do more than pass on assets – it must protect your child’s future. A well-crafted plan can protect your child’s long-term financial security, preserve their access to vital government benefits, and provide the care and support your child needs, even after you’re gone. Planning now can make a lasting difference in your child’s future.
Recognize Inheritance Obstacles
Leaving money directly to your child with special needs can cause unintended harm.
Children with special needs may depend on government programs like Supplemental Security Income (SSI), Medicaid, or housing assistance. These programs have strict income and asset limits. If you leave money directly to your child, even in small amounts, it could unintentionally disqualify them from these crucial benefits.
Additionally, managing a large inheritance may overwhelm your child, especially if they cannot manage financial or legal affairs independently. Without careful planning, well-meaning family gifts or inheritances can do more harm than good.
Set Up a Special Needs Trust
A special needs trust (SNT) allows you to set aside funds for your child’s benefit while protecting their eligibility for government programs. The trust holds assets on your child’s behalf, and the appointed trustee will use the money for approved expenses, which may include:
- Education – These expenses may include tuition for specialized schools, private tutoring, vocational training, or educational therapies. By covering these costs through the trust, you can enhance your child’s development and education without affecting their eligibility for public benefits.
- Medical Care – These costs can pile up, including the costs of dental care, alternative therapies, mental health counseling, private specialists, or adaptive equipment. The trust can provide critical funding for these services and treatments that government assistance may not cover.
- Transportation – Safe and accessible transportation can be expensive, and the trust can cover certain expenses, including a wheelchair-accessible van, rideshare services to appointments, or public transportation passes. Reliable mobility helps your child participate in daily life with greater independence.
- Recreation – These expenses may include adaptive sports, art programs, music classes or lessons, sensory-friendly outings, or summer camps designed for children with disabilities. These experiences encourage social skills and community involvement, which is vital for your child’s emotional and social development.
Choose a Careful Trustee
The trustee will handle the money and make distributions for your child’s benefit. This person should understand both the financial duties involved and your child’s unique needs. Choosing the right trustee is one of the most critical decisions you’ll make, and you’ll want to consider several factors, including:
- Family Member – A parent, grandparent, sibling, or close friend can be a trustee. They know your child well and usually don’t charge a fee, but they may not know trust rules or government benefits programs and might not be able to serve long-term.
- Professional Trustee – A lawyer, accountant, or financial advisor can manage the trust and follow legal and tax rules. They bring subject area knowledge but may not understand your child’s daily needs or personal preferences.
- Corporate Trustee – A bank or trust company can handle large trusts with experience and long-term reliability. They offer strong management but often charge higher fees, have strict requirements, and may be less flexible.
Contact an Experienced Family Law Attorney Today
Planning for a child with special needs requires more than good intentions – it requires the right legal tools and guidance. At Monk Law Firm, PLLC, we help families create estate plans that protect benefits, honor personal needs, and offer peace of mind for the future. Contact us today for your consultation and start building a plan that supports your child for life.