Estate Planning for Individuals with Special Needs: Ensuring Proper Care
by Matthew Klieger
Matthew Klieger believes estate planning is essential for everyone, but it becomes even more crucial when planning for individuals with special needs The primary goal in these cases is to ensure that your loved one receives proper care and financial security without jeopardizing their eligibility for government benefits, such as Supplemental Security Income (SSI) or Medicaid.
A key tool in estate planning for individuals with special needs is the creation of a special needs trust (SNT) This type of trust allows families to set aside assets for the benefit of the individual without those assets being counted toward the stringent asset limits required for government assistance programs. With an SNT, funds can enhance the individual's quality of life, providing supplemental needs like transportation, medical care, education, and recreational activities However, the trust must be structured carefully to maintain eligibility for benefits.
There are two primary types of special needs trusts: first-party and third-party A first-party trust is funded with the individual's assets, such as an inheritance or settlement. A third-party trust is funded by someone else, typically a parent or guardian Both types of trusts allow the individual to retain access to government benefits while receiving additional financial support from the trust.
Another essential aspect of estate planning for individuals with special needs is selecting a guardian or caregiver who will ensure the person's day-to-day needs are met This includes managing medical decisions, financial responsibilities, and overall well-being Create a letter of intent, which outlines the individual's care needs, preferences, and details about their daily routine to guide future caregivers
Working with an attorney specializing in special needs estate planning is critical to developing a comprehensive plan tailored to your loved one's needs This process will ensure they receive the best care and financial protection while safeguarding their eligibility for vital government programs.
Estate planning for individuals with special needs is crucial to ensuring a lifetime of care and security for your loved one