How Can I Plan for My Special Needs Child’s Future?
August 16th, 2017
Any parent with a special needs child expects that he or she will care for and financially support that child for the remainder of his or her life. A parent with a special needs child, however, is likely to worry about what will happen to the child after he or she is no longer there to care for, support, and advocate of behalf of the child. Fortunately, parents of special needs children can take steps to ensure their future care and support through some simple estate planning techniques.
We can help parents of special needs children create various kinds of trusts that you can fund in order to save for your child’s future. The most common types of these trusts are Support Trusts and Special Needs Trusts. You fund a Support Trust with whatever amount of money or assets that you choose, and you also pick a trustee who will make distributions as needed for the child’s care. Eligible distributions include things like food, clothing, shelter, and medical care. If your child has a Support Trust, however, he or she will not be eligible for Medicaid or Supplemental Security Income (SSI). Therefore, if your child receives that type of financial assistance, you should avoid the Support Trust.
On the other hand, a Special Needs Trust is often the most effective way to provide future support for your special needs child. This type of trust allows for a pool of resources to support the child while still maintaining the eligibility of the child for public benefits such as Medicaid and SSI. If you have a special needs child who will need care and support following your death, then a Special Needs Trust can be a successful means of doing so.
Planning for the future of your special needs child is a complex process that can involve many different options. By answering some of the questions about how to create an effective and well-funded plan, it is our hope that we can help you create the long-term care and estate plan that is best for you and your family. At Legacy Law Center, we are here to advocate on behalf of all individuals and their families who need help planning for the future, no matter what options you choose. Contact us today at (734) 995-2383, set up an appointment with one of our Michigan long-term care planning attorneys, and discover how we can help you and your family.