Estate Planning When You Have a Special Needs Child

1. Establish a Special Needs Trust:
   A Special Needs Trust (SNT) is a fundamental tool in estate planning for families with special needs children. This trust allows you to leave assets for your child's benefit without jeopardizing their eligibility for government assistance programs like Medicaid and Supplemental Security Income (SSI). The assets in an SNT are not counted as the child's income or resources, ensuring continued access to vital benefits.
2. Choose the Right Trustee:
   Selecting a trustworthy and capable trustee is crucial when creating a Special Needs Trust. This person or entity will manage the trust assets and make decisions for your child. Consider family members, close friends, or professional trustees with experience managing special needs trusts.
3. Fund the Trust Adequately:
   To ensure your child's long-term financial security, adequately fund the Special Needs Trust. This may involve transferring assets, life insurance policies, or other investments into the trust. Be mindful of the funding limits imposed by government programs to maintain eligibility.
4. Provide Detailed Instructions:
   Clearly outline your wishes and expectations for using trust funds in your estate planning documents. Specify the types of expenses the trust can cover, such as medical care, therapies, education, housing, and quality-of-life enhancements. Detailed instructions will guide the trustee in fulfilling your vision for your child's future.
5. Consider Guardianship:
   If your child requires ongoing care and support, you should designate a guardian who can provide emotional and financial assistance. This guardian should be someone you trust implicitly and who understands your child's needs.
6. Regularly Review and Update Your Plan:
   As your child's needs and circumstances evolve, revisiting and updating your estate plan is essential. Life events such as marriage, divorce, or changes in government regulations can all impact your special needs child's financial well-being.
7. Involve Professionals:
   Estate planning for special needs children can be legally complex. Consult with an attorney experienced in special needs planning to ensure your plan complies with state and federal laws. You may also want to engage a financial advisor to help you make informed investment and funding decisions.