Estate planning for a family with a special-needs child can be a challenging process, especially when the child is or may receive need-based public benefits such as Medicaid or SSI. As the owner of the Thornton Law Firm, the main goals in estate planning for any child is to protect their benefits. But, this is even more important in a special needs estate plan.Special Needs Estate Plan

4 key considerations when it comes to a special needs estate plan are:

  1. Which planning option is best? There are many paths that can be taken on the overall plan, which can include disinheriting the child (which doesn’t protect him/her), naming the child’s siblings as beneficiaries with the intent that they will oversee the affected child’s care, leaving an inheritance to the child (which will most likely disrupt his or her public funding eligibility), or setting up a Special Needs Trust for any inheritance. A trust allows the most protection for the child.
  2. Life or death? A Special Needs Trust can go into effect upon death, as many trusts do. However, it can also be set up and activated while the parents are still alive. This allows for many benefits, including possibly avoiding probate on most assets and allowing other family members to contribute to your child’s care without disrupting his or her federal or state benefits eligibility.
  3. Should it be revocable or irrevocable? Often a trust will be made revocable when the family wants to maintain maximum control over it or there is no concern over income tax. However, there are situations in which you may want the trust to be irrevocable in order to maximize protection for your child and his or her benefits
  4. How should a trustee be selected? Choosing someone to manage a trust is an extremely important consideration, especially since operating a special needs trust is often a much more complex and time-intensive endeavor than operating other types of trusts. Options include a close family member or friend, a lawyer, a non-profit organization dedicated to helping special-needs families, a trust management company, a financial institution or co-trustees (usually someone close to the family working with a company).

To speak with a qualified legal team in the Raleigh and the Triangle area about special needs estate planning, contact Thornton Law Firm.