Orange County Special Needs Estate Planning
As parents, we always want to make sure our children are cared for, no matter what the future holds. If your child has special needs, planning for their future takes on added importance. You want to ensure they have the support they need, not just now, but long after you’re gone. Special needs estate planning allows you to provide for your child financially while protecting their access to vital benefits. It’s a way to give yourself peace of mind and offer your child a secure future.
Why Special Needs Estate Planning Matters
Special needs estate planning matters because it allows you to protect your child’s future while preserving their eligibility for important government benefits like Supplemental Security Income (SSI) and Medicaid. Without proper planning, leaving an inheritance directly to your child could disqualify them from receiving these essential benefits.
By creating a special needs trust, for example, you can set aside funds to enhance your child’s quality of life without jeopardizing their access to healthcare, housing, and other vital services. This type of planning also provides a clear roadmap for how your child’s care and resources will be managed when you are no longer able to do so. It’s not just about money—it’s about ensuring your child is well-supported in all aspects of life.
When Special Needs Estate Planning Is Necessary
Special needs estate planning becomes necessary when you have a child with a physical or intellectual disability that impacts their ability to be financially independent. It’s important to start planning as early as possible, especially if your child depends on government benefits like SSI or Medicaid for support.
You may also need to consider special needs planning when significant life changes occur, such as receiving an inheritance, winning a legal settlement, or planning for long-term care. Even if your child is young or not currently receiving benefits, planning now can protect their future eligibility and ensure they have the resources they need throughout their life. It’s never too early to think about your child’s financial well-being and how to protect their access to essential support programs.
Steps to Take in Special Needs Estate Planning
Taking steps to ensure your child with special needs is cared for financially and emotionally can feel overwhelming, but breaking it down makes the process more manageable. Here’s how to get started:
- Gather information: Collect details about your child’s disability, medical needs, and current financial situation. This helps identify what type of support they will need long term.
- Consult with professionals: Speak with an estate planning attorney to discuss your options for protecting your child’s access to benefits like SSI and Medicaid.
- Create a Special Needs Trust: This is a vital tool that allows you to leave money or assets for your child’s benefit without affecting their eligibility for government benefits.
- Plan for the future: Decide who will manage the trust and care for your child after you’re gone, including naming a trustee and guardian, if necessary.
Options for Protecting a Child with Special Needs
Special Needs Trusts (SNTs)
A Special Needs Trust is one of the most effective ways to protect your child’s financial future without affecting their eligibility for government benefits like SSI and Medicaid. There are two main types of SNTs: First-Party Trusts, which are funded with the child’s own assets (such as a settlement or inheritance), and Third-Party Trusts, which are funded by parents or other family members.
ABLE Accounts
ABLE (Achieving a Better Life Experience) accounts are another useful option for families. These tax-advantaged savings accounts allow you to set aside money for disability-related expenses, such as education, housing, and medical care. The funds in an ABLE account do not count against the asset limits that govern eligibility for public benefits, providing a flexible and accessible way to save for your child’s future.
We Can Support Your Family’s Special Needs Planning
At OC Wills & Trust Attorneys, we understand the unique challenges of planning for a child with special needs. Our team will guide you through creating a plan that protects your child’s assets while preserving access to vital benefits. Contact us today to schedule a consultation and secure your child’s future.
