All adults need an estate plan to protect themselves and their families. If you have a child with special needs, it becomes even more critical.
One tool you should consider is a special needs trust. These have some unique attributes that can help with your family situation.
The trust will look after money for the child involved
If your child has mental health issues, they may not be able to care for their money themself. Sadly, others may know this and try to take advantage of your child when you are no longer around to protect them. A mean-spirited advisor, friend or family member could soon steal the assets you leave your child on death. Putting them in a trust prevents that.
Special needs trust protect other family members, too
Health care providers will happily drain your bank account to pay for care for your child. If you let them, you and your other children may struggle financially. Moving assets into a trust stops government agencies from counting them when assessing your child’s eligibility for help with medical care, housing and other such things.
A special needs trust gives you and your child peace of mind
Children typically outlive their parents. Wondering who will look after your child when you are gone can be worrying. Knowing you have money put aside for them in a safe place while securing their entitlement to government-funded aid and care allows creates a more predictable future.
Creating an appropriate estate plan for your family requires time and knowledge. You need the help of someone willing to assess your particular situation, not someone who offers you a generic plan that works for their last client.