Let’s be real—thinking about the future can be overwhelming. Heaven knows no one really enjoys contemplating their own mortality. It can be even more stressful when it comes to planning for a child with special needs. But don’t worry! With the right steps, you can create a solid plan that ensures your child is well cared for, no matter what happens. We’ve got a great eBook you can download to take with you too.
Here’s a breakdown of what you need to know (without all the boring legal jargon!):
1. The Magic of a Special Needs Trust (SNT)
Think of an SNT as a safety net for your child’s future. This special trust holds money for your child without messing up their eligibility for government benefits like Medicaid and SSI. The best part? It can cover everything from therapy to fun activities—because life isn’t just about necessities, right?
2. Choosing the Right Guardian and Trustee
Picking a guardian means choosing someone you trust to care for your child if you’re not around.
A trustee, on the other hand, manages the money in the SNT to make sure it’s used wisely. Think of them as your dream team, working together to keep your child happy and secure.
Sometimes it makes sense to name the same person as guardian AND trustee. Sometimes you may prefer two different people. The goal is to have the right people in the right roles based on their skill-sets.
3. Writing a Letter of Intent (aka Your Parenting Cheat Sheet)
If something happens to you, will a caregiver know what to do? This is your chance to tell future caregivers everything they need to know about your child, including:
- Daily Routines – Meals, bedtime, and activities
- Medical Needs – Medications, allergies, and doctor info
- Favorite Foods – Go-to meals and dietary needs
- Comfort & Soothing – What helps them feel safe
- Communication & Behavior – Triggers, cues, and interactions
- Key Contacts – Emergency numbers and support
It’s not a legal document, but it’s a lifesaver for anyone stepping in to help.
4. No Direct Inheritance, Please!
A large majority of parents are unaware that if they leave an inheritance outright to their child, it could disqualify them for social security or Medicaid benefits in the future (which is often the only health insurance available for disabled individuals). Instead, funnel those funds into the SNT so they get the best of both worlds—financial security and government assistance.
5. Life Insurance: The Gift That Keeps on Giving
Want to make sure your child has financial support even after you’re gone? A life insurance policy can fund the SNT, providing long-term security without breaking the bank. You’ll want to work with a professional in this area to make sure the policy is going to be affordable long term.
6. ABLE Accounts = Extra Financial Freedom
An ABLE account is like a savings account for your child that doesn’t mess with their government benefits. It’s tax-advantaged and can be used for essentials like housing, transportation, and medical care—definitely worth looking into!
7. Know the Benefit Rules (Because They Can Be Tricky!)
Government programs like Medicaid and SSI have a lot of fine print. Ensure your estate plan is set up in a way that keeps your child eligible for these crucial services. Make sure your trustees know to work with a knowledgeable attorney when the time comes. You don’t want anyone running afoul of an obscure rule and accidentally losing vital benefits.
8. Keep Your Plan Fresh
Life changes—laws change—your child’s needs change. That’s why it’s important to review and update your estate plan every few years. An attorney who specializes in special needs planning can help make sure everything stays on track.
Free Resource: Legal Planning for Children with Special Needs
Estate planning might seem daunting, but taking these steps now will give you peace of mind and set your child up for success. You’ve got this!
For more information about planning for a child with special needs, download our free eBook: Legal Planning for Children with Special Needs.
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