Estate planning is only good to the extent that it takes an individual’s unique circumstances and goals into consideration. For this reason, there can never be a one size fits all estate plan. Because of circumstances, what works for one family will not necessarily work for another family. For families with special needs members, there are specific concerns that need to be addressed for an estate plan to be a good fit.
When parents know their children are in need, they will likely want to do something to help. Even when kids are adults, their parents just want make sure they are happy and healthy. If a child has special needs, the desire to provide support -- in all forms -- is likely heightened.
Those who have special needs children know that caring for such a child can be a challenge. The range of disabilities varies greatly, and so do the specific needs each of these children. When it comes to planning for the future of these children, there are additional matters to think about, including how to provide financial assistance for a special needs child without jeopardizing their eligibility for government benefits.
In our previous post, we began looking at the importance of proper planning in order to see to the care of family members with special needs. We left off discussing the importance of being aware of asset thresholds associated with eligibility for government benefits programs like Social Security and Medicaid.
Financial planning for special needs family members is a real challenge for many families. According to Census statistics, roughly 21 million families in the United Sates are caring for an individual with special needs. Roughly one in every 26 families is raising a child with a disability.
In our previous post, we began discussing ways parents can plan for the care of their disabled children. We mentioned special needs trusts as a great way to provide support for such children without harming their ability to qualify for government benefits down the road.
Planning for the care of disabled children is an issue that affects many parents. According to data from the U.S. Census Bureau, 12 percent of the population has a severe mental or physical disability. That is not a small amount.
Supplemental or special needs trust are a valuable tool in estate planning. Among other benefits, they are a great way to assist in caring for a disabled loved one without harming their ability to qualify for public benefits programs.
Special needs trusts are a vital tool for families that have handicapped members who are unable to care for themselves. These trusts are a way to provide for special-needs children who will outlive their parents and ensure that these children will continue to have adequate support and housing.
A special needs trust is a vital financial planning tool for many of the 54 million Americans who have a mental or physical disability. Many disabled individuals have unique financial planning needs because of the federal and state laws that cap the amount of assets that a person can have in order to qualify for Medicaid and Supplemental Security Income.