If you have a loved one with special needs, he or she is probably not far from your thoughts. Worrying about how such a family member will be cared for after you have passed away can be difficult. During the estate planning process, you can create a special needs plan for your loved one that will give you the peace of mind you need.

Special Care

If your special needs loved one is a minor child, you must take special care in picking the right guardian. You will most likely choose a friend or family member who has spent a great deal of time with your loved one and understands his or her needs. You must also consider what will happen when your loved one reaches adulthood.

When a special needs child reaches adulthood, you are no longer legally able to make decisions for that person. If, however, you feel that person needs assistance, you can apply to act as his or her guardian. As guardian, you will have the authority to plan ahead for his or her care after your death.

Picking the right guardian for an adult with special needs can be tricky since it is a much longer obligation than guardianship for a child. Allow plenty of time to plan for the best guardian.

Special Funds

Special Needs Planning also allows you to arrange financial security for your special needs family member. There are several ways to leave funds for a special needs loved one. You can leave an outright inheritance if your loved one is an adult and a mental disability does not affect money management. If, however, your special needs family member receives government aid via Supplement Security Income or Medicaid, leaving an outright inheritance could end that aid until all inheritance funds have been used.

You can also leave funds for the care of your loved one directly to your chosen guardian. But beware; this person may also have trouble getting any kind of government aid with inheritance funds in their possession.

The better option is almost always a Special Needs Trust. This type of Trust allows you to name a Trustee who will watch over your loved ones financial needs. A Trust affords many advantages: naming a different financial trustee than guardian, maintaining an inheritance for a special needs minor, and avoiding disruption of aid monies.

Tags: creating a trust, Special Needs Planning, special needs trust, trusts