Estate planning for parents of special needs children is a critical part of protecting their financial future. With the right planning, parents can ensure their child receives the care they need, even after the parents are gone. Here are some tips for estate planning for parents of special needs children.
Understand the Needs of Your Child: Before you begin estate planning, it’s important to understand the needs of your special needs child. Depending on the level of care required, you may need to create a plan that will provide for their long-term care. You should also consider what benefits they may be eligible for, such as Medicaid or Supplemental Security Income (SSI).
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Create a Trust: Creating a trust is one of the most important steps in estate planning for parents of special needs children. A trust will allow you to set aside money or assets for your child’s future care. It also protects any assets from being counted as income for the purposes of determining Medicaid eligibility.
Name a Guardian: Naming a legal guardian is an important part of estate planning for parents of special needs children. The guardian will be responsible for making decisions about your child’s health, education, and finances. It’s important to choose someone who is knowledgeable and understanding of your child’s needs.
Name a Trustee: In addition to a guardian, you should also name a trustee to manage the trust you create. The trustee will be responsible for investing and managing the trust. They will also be responsible for making sure the trust is used for the benefit of your child.