Tuesday, December 9, 2014

Special Planning for Your Special Needs Children

Special Needs Planning

An Overview of Special Needs Estate Planning:

The purpose of Special Needs Estate Planning is to provide for the needs of loved ones with disabilities when we are no longer there to organize and advocate on their behave. Parents of children with special needs must make a careful estate planning choices to coordinate all of the legal, financial, and special care requirements of their children- both now and in the future.
Special Needs Trusts may be a critical component of your estate planning if you have loved ones with physical or mental disabilities that you wish to provide for after your passing. Generally, Special Needs Trusts are either stand-alone trusts funded with separate assets (sort of like life insurance) or they can be sub-trusts in existing living trusts.
There are several types of trusts to assist with these special planning challenges.

One of the most common type is: 

Special Needs Trusts: 

For many parents, a Special Needs Trust is the most effective way to help their child with a disability.  A Special Needs Trust manages resources while also maintaining the child’s eligibility for public assistance.
There are two types of Special Needs Trusts:

Third-Party Special Needs Trust:

Created using the assets of the parent(s) as part of an estate plan; distributed be either a parent’s Will or Living Trust.

Self-Settled Special Needs Trust:

Generally created by a parent, grandparent, or legal guardian using the child’s assets to fund the Trust (e.g., when a child receives a settlement from a personal injury lawsuit and will require lifelong care). If assets remain in the Trust after the child’s death, a “payback” to the state is required, but only to the extent the child receives public assistance benefits.
Don't leave these precious children without a fool proof plan to protect and guide them. When you're not here for them you must make sure that someone and something will be. ALWAYS make sure someone has their voice when you can't. 

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