Parents of children with special needs face unique challenges when planning for the future; concerns about what will happen to a child with disabilities after a parent passes away weigh heavily on many families. Legal planning offers solutions that can provide long-term care, financial stability, and quality of life for special needs children. A lawyer experienced in estate planning for families with special needs children can help create a comprehensive plan that addresses medical care, living arrangements, financial support, and government benefits.
What Is a Special Needs Trust?
A “special needs trust” is a legal arrangement that holds assets for the benefit of a person with disabilities while preserving eligibility for government benefits like Supplemental Security Income and Medicaid. The trust pays for expenses that government programs do not cover, including recreational activities, education, therapy, and personal care items. A trustee manages the funds according to the trust terms and uses them to enhance the beneficiary’s quality of life.
How Does a Letter of Intent Help Caregivers?
A “letter of intent” provides detailed information about your child’s daily routine, medical needs, preferences, and personality to future caregivers and guardians. This document describes medication schedules, dietary requirements, behavioral triggers, communication methods, and favorite activities. The letter helps new caregivers maintain consistency in your child’s life and respond appropriately to their needs. While not legally binding, it serves as a valuable reference guide.
Why Should I Appoint a Guardian?
Appointing a “guardian” through your will designates who will have legal authority to make decisions for your child if something happens to you. The guardian handles medical decisions, living arrangements, education choices, and daily care responsibilities. Without this appointment, a court will decide who takes on this role, which may not align with your wishes.
What Role Does Government Benefits Planning Play?
“Government benefits planning” helps families maximize available public assistance programs while maintaining eligibility for critical services. It is important to know that Medicaid and Supplemental Security Income provide healthcare coverage and financial support for individuals with disabilities, but strict rules govern these programs. Proper planning prevents accidental disqualification due to inheritance or gifts.
Can I Name a Care Coordinator in My Plan?
Many families designate a “care coordinator” or advocate who monitors the quality of care and services the child receives. This person acts as a liaison between caregivers, medical providers, government agencies, and service organizations. The coordinator might be different from the financial trustee or guardian, allowing you to match specific skills to particular roles.
What Happens if My Child Receives an Inheritance or Gift From Someone Else?
If your child with special needs receives an inheritance or gift, it could disqualify them from government benefits that have strict asset limits. Relatives and friends should be informed not to leave money directly to your child in their wills or give substantial cash gifts. Instead, they can contribute to an existing special needs trust or create their own third-party trust for your child’s benefit. Educating extended family members about this issue prevents well-intentioned gifts from causing unintended financial harm.
How Often Should I Update My Special Needs Plan?
Your “special needs plan” should be reviewed every three to five years or whenever significant life changes occur. Changes in your child’s condition, available benefits, family circumstances, or financial situation may require plan modifications. New laws affecting disability benefits or estate planning strategies also warrant review.
Our Seasoned Chester County Wills and Estates Lawyers at Eckell Sparks Can Help Protect Your Child’s Future
If you need legal advice regarding special needs financial planning, contact our Chester County wills and estates lawyers at Eckell, Sparks, Levy, Auerbach, Monte, Sloane, Matthews & Auslander, P.C. For an initial consultation, call us today at 610-565-3700 or complete our online form. With office locations in Media and West Chester, Pennsylvania, we proudly serve clients in the surrounding areas.