Experts say that learning about the special needs of a child early allows parents to have the chance to begin planning immediately, which can give parents peace of mind.
Fox 25 in Oklahoma City’s recent article entitled “How a document could protect the financial future of a child with special needs” recommends that you become knowledgeable about your health insurance coverage.
Note that your child will probably need to apply for government assistance at some point, because at age 26 he will age out of his parent’s insurance.
Securing the future of a child with special needs all the way to adulthood can be very difficult.
Leaving a child with special needs money you have saved could be helpful— but it could place their benefits at risk. Instead, a supplemental trust, called a special needs trust, is the way to plan, so they have everything they need.
With a trust in place, the child would need to pay for expenses in the areas not covered by the government programs.
With a special needs trust, the child has no way to access the income or these assets unless they have a need.
A special needs trust is usually drafted by an estate planning attorney or elder law attorney. This type of trust allows you to leave money or property to a loved one with a disability. These assets are placed in the trust. If you gift them outright, you could risk your loved one’s ability to receive Supplemental Security Income (SSI) and Medicaid benefits. By creating a special needs trust, you can avoid some of these problems.
Naming a guardian for your child with special needs is also very important. A guardian could help make life decisions, if the parent passes away. Therefore, make certain that it’s someone you trust. This may include a legal professional.
Reference: Fox 25 (Oklahoma City) (Jan. 27, 2020) “How a document could protect the financial future of a child with special needs”
Sims & Campbell, LLC – Annapolis and Towson Estate Planning Attorneys