Idaho Law Blog
Estate planning is a great process that can be used by a parent to create a customized plan in providing for their special needs child. A person with special needs is an individual who has either a mental or physical handicap or disability that limits their ability to function normally in life. Typically, a person with special needs usually requires a great deal of assistance to be able to handle the basic functions of life. The purpose of this blog is to provide three ways that you can use your estate planning to help your special needs child.
- CREATE A SPECIAL NEEDS TRUST
The first way your estate planning can help your special needs child is by creation of a Special Needs Trust, which is sometimes called a supplemental Needs Trust. This type of trust document is used to help a specific child with a specific special need. You can customize the trust so that it will supplement the basic necessities that are needed by your special needs child. You can also direct the types and kinds of programs that your special needs child should receive that can be funded through a trust.
Special Needs Trust is often used to provide for the medical color housing, food, programs, entertainment, and future of your special needs child. The idea is that the Special Needs Trust will last longer than your special needs child so that these basic necessities can be provided for when needed.
- SET UP YOUR LIFE INSURANCE CORRECTLY
Perhaps the biggest area of problems that exist when creating an estate plan for a special needs child has to do with life insurance. When life insurance is not handled correctly it can cause substantial problems for a special needs child who is the recipient of state or federal benefits programs.
Rather than leaving money directly to a special needs child through life insurance by naming them as the beneficiary, it is wiser to name the Special Needs Trust that has already been created as a recipient of those funds. In this way, a parent can ensure that the monies will be used for the benefit of the special needs child but that the monies will not disrupt or cause any problems with the benefits programs that exist and that are being utilized.
- DO NOT JEOPARDIZE BENEFITS PROGRAMS
AS has been mentioned already, the final consideration is that you do not want to jeopardize any benefits plans or programs that exist for your special needs child. When creating a Special Needs Trust a parent should consider the laws of the state in which they live. There may be specific limitations on the types or kinds of distributions that can be made from a Special Needs Trust.
United hope, specific language has to be contained within a Special Needs Trust to show that these Special Needs Trust purpose is not to provide for the basics that the benefits programs already provided. Additionally, the language of the Special Needs Trust needs to State specifically that it can only be used for purposes of supplementing the benefits programs that already exist and are being used..
If you have a child with special needs and have questions about what your estate planning can do to provide for that child, we can help. Call us toll free at 877-232-6101 or 208-232-6101 for a consultation with Lane Erickson and the Racine Olson team of Estate Planning attorneys in Idaho. You can also email Lane Erickson directly at lve@racinelaw.net. We will answer your Idaho Estate Planning questions and will help you solve your Idaho Estate Planning problems.
This website includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. You need to contact a lawyer for advice on specific legal issues.