When their daughter Jill was born, Carrie and Tom were no different than any other parents. They displayed pictures on their phones, computers, cubicle walls, Facebook profiles, and anywhere else they could. However, Carrie started to notice that Jill wasn’t developing the same way her nephews had. Tom wondered why it was so difficult for Jill to speak as she passed two. And when Jill started daycare, it became clear something was different.
When Jill was diagnosed with autism, Carrie and Tom suddenly had very different worries than other parents. Would Jill ever find a job? Would she be able to take care of herself if something happened to them? How much would she be affected by the autism? How could they prepare for Jill’s future when they didn’t know what her future would look like? Would the money they had saved be enough?
Every year hundreds of thousands of families struggle with the same questions as Carrie and Tom. Families plan and save for their children, but what if that child requires more special care, medical attention, and assistance then they had prepared for? Not just autism, but many other disabilities can cripple families. While some children may become only mildly impaired other children may ultimately need assisted living if they are unable to care for themselves.
There are ways families can plan for their special needs children, though. Families can start planning for their child’s future by setting up a Special Needs Trust. A Special Needs Trust ensures that its beneficiary (in this case the child with special needs) can maintain their government benefits even while they are receiving the benefits of the asset in the trust. The special needs child is only the beneficiary and not considered the owner of the property, so they will be able to collect their government benefits as well as have access to the funds in the trust.
Special Needs Trusts can help ensure a special needs child will be taken care of financially throughout their life. Under the terms of a Special Needs Trust, a Trustee will manage the trust to ensure it will last the lifetime of the beneficiary. The Trustee can make distributions to the beneficiary to cover expenses not taken care of by their government benefits. The Special Needs Trust also allows for flexibility. Parents can set up the trust at any point in their child’s life, and once it is established the funds in it can be used immediately or stored for future expenditures.
A qualified estate planning attorney can help you determine if a Special Needs Trust is best for a member of your family. The Law Offices of Daniel O. Hands, P.C. has been helping families with this unique situation plan for their child’s future for over thirty years.
