Families who have more than one child with special needs have many challenges. Planning for their child’s safety and making sure they are cared for and provided for after they pass away shouldn’t be one of them.
Part of your estate plan should include creating legal provisions for your children with special needs. It’s not enough to simply bequeath a lump sum to each child with special needs in your will; in fact, that may actually be more harm than good. Another challenge families with multiple children with special needs face is a lack of resources. While establishing a Special Needs Trust (SNT) can be a viable option, if you don’t have much extra money, it may not benefit your children significantly. One child may need more financial support than the other. Your estate plan should include careful consideration when dividing your resources.
Insightful estate planning attorneys can help you learn more about tools such as designating your SNT as the beneficiary for a life insurance policy to ensure that each child has sufficient funds in the trust.
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Providing For Your Child with Special Needs
About one in four Americans have some kind of disability, physical, mental, or both. Depending on the severity of your child’s disability, they may expect to be able to live independently once they reach adulthood or require around-the-clock care for the rest of their lives—or anything in between. Estate planning for your child with special needs begins with a realistic evaluation of your child’s ability to live relatively independently and have a job or whether they will be unable to secure partial employment and must live in a nursing home or assisted living facility.
It’s important to remember that your children with special needs will have different needs; one child may need a bit of support, while the other child may need significantly more. Work with your lawyer to find a division of your estate (including taking out separate life insurance policies naming each child as the beneficiary of one) to provide the level of financial support your children will need.
This can help you consider your long-term budget and whether your child will be eligible for government benefits to cover health care, long-term nursing care and accommodations, and other needs (such as a partial stipend to sustain themselves once they reach adulthood).
Most federal and state benefits programs are needs-based and income-based, meaning your child could be rendered ineligible for medical benefits if their assets and income are above the eligibility threshold. Even assets gifted to the child (such as through your will) may be counted toward their eligibility maximum if the assets are in the individual’s name or under their control.
How Can a Texas Estate Planning Lawyer Help Me Meet My Children’s Needs?
For an SNT to be effective, it must follow specific guidelines for its construction. An estate planning attorney familiar with state requirements for a Texas SNT can ensure that the trust will benefit your children without jeopardizing their benefits.
Your attorney can also help you with financial planning to ensure that your children can pay for any long-term medical treatment and personal care assistance. This may include establishing a separate trust to pay for an in-home care provider or purchasing separate life insurance policies naming the trust as the beneficiary.
Solutions To Providing For Your Child While Maintaining Their Benefits Eligibility
One of the most effective solutions to provide for your child while ensuring that they remain eligible for income and asset-based government programs is by establishing a Special Needs Trust (SNT). You and your estate planning lawyer can draft the trust and place assets and property in it, making the child the trust beneficiary. You can also name the SNT as the beneficiary of your life insurance policy instead of your child, so the child still benefits from the money but does not lose their benefits.
An experienced estate planning law firm can explain your options under Texas law for establishing an SNT, changing the beneficiary of your life insurance policy, and working with you and your child’s other parent to create an estate plan that provides ongoing benefits for your child and ensures that their housing and other needs will be paid for, even when you’re not around to take care of them.
Don’t delay estate planning for a child with special needs. If you have more than one child with special needs, estate planning can be even more complicated, as your children may have different needs. Contact an estate planning attorney today to plan for your child’s future.
Disclaimer: The information provided in the blogs on this website is for educational and reference purposes only and does not constitute legal advice. Every legal matter is unique, and the content here may not address your specific circumstances. We strongly encourage you to consult Chris and Krupa Downs Law to discuss your individual needs and receive tailored guidance. Contacting us through this website does not create an attorney-client relationship. Please seek professional legal advice before taking any action.
