Special Needs Planning – FAQ

 

 

 

What is special needs planning?

 

Special needs planning is the process of planning for a family member who may have some type of disability or special need. You may want to know how it is possible for you pass money on your special needs loved one (when he or she cannot have more than $2,000.00 in assets) without affecting their government benefits. If you have a family member with special needs, planning is a MUST.

Do I need to do special needs planning if I already have a will?

Yes, you need to do special needs planning, even if you already have a will. If you only have a will in place to pass on assets to your loved one with special needs, you are essentially gifting that money or property over to the government. The government benefits such as Medicaid or SSI may be cut off until the money is spent.

 

 

 

What is a Special Needs Trust?

 

 

 

A special needs trust is a document that, if properly drafted, can help ensure that your loved one will benefit from the money that you leave to the trust. For example, the document could state that the money could be used for items to enhance their lives, such as computers, televisions, radios, or vacations. Perhaps the money could be used to pay for an advocate to act on their behalf in certain situations.

 

 

 

 

Is special needs planning just for children with disabilities?

 

 

 

 

No. Special needs planning should be done for any family member who has special needs. It could be a child, sibling, parent, or any loved one.

How do I know how much money is needed for the special needs trust and how do we obtain that amount of money?

 

 

 

 

 

The answer to this question depends on many different things. You need to know what your assets and debts or liabilities are. You need to research what kind of care your loved one will need when you are gone and the cost of that care. What do you spend now on your loved one’s care? How long do you think you and your special needs loved one will live? What will happen if you spend all your assets? What if Social Security or other government benefits are no longer available in the future?

 

 

 

A combination of resources may be the solution for your family. You may be able to set up a combination of savings and investments with a financial planner, and Elder Law Firm can recommend some resources to you. Insurance also may be a good option for funding a special needs trust.