Estate planning is an important consideration for all parents, but it is especially important for parents of special needs children. It is important for parents of special needs children to have a solid estate plan in place to ensure that their child’s needs are met and their assets are managed appropriately.
Here are 4 considerations for parents of special needs children:
1. Establish a special needs trust
One of the most important aspects of estate planning for parents of special needs children is to establish a special needs trust. A special needs trust is a type of trust that is designed to provide for the needs of a person with a disability without jeopardizing their eligibility for government benefits. By establishing a special needs trust, parents can ensure that their child’s needs are met and that their assets are managed in a way that does not impact their eligibility.
2. Consider guardianship
Another important consideration for parents of special needs children is to consider guardianship. Guardianship is a legal arrangement that allows a person to make decisions on behalf of another person who is unable to make decisions for themselves. Parents may want to consider establishing guardianship for their child, especially if their child is unable to make decisions for themselves.
3. Plan for the future
Parents of special needs children should also plan for the future by identifying who will take care of their child after they are unable to. This may involve identifying a guardian or establishing a trust to provide for your child’s unique needs.
4. Consider tax implications
Estate planning for parents of special needs children should also take into account the tax implications of transferring assets. It’s important to determine the best strategies for minimizing estate and gift taxes. Some strategies that may be used include setting up trusts or transferring ownership in a gradual manner over time.
Estate planning is a critical consideration for parents of special needs children. By taking the time to create a solid estate plan, parents can ensure that their child’s needs are met and that their assets are managed appropriately. Working with a qualified estate planning attorney can help to ensure that your estate plan meets your child’s unique needs and reflects your current situation.
