Estate Planning for Parents of Special Needs Children

Estate Planning for Parents of Special Needs Children

Estate planning is essential for everyone, but it becomes even more critical for parents of special needs children. Without the proper documents—such as a Special Needs Trust—a child with disabilities may risk losing access to vital government benefits.

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Why Estate Planning Matters for Special Needs Families

If parents of a special needs child fail to plan appropriately, any assets left directly to the child could jeopardize their eligibility for essential government programs.

Programs like:
Supplemental Security Income (SSI)
Social Security Disability Insurance (SSDI)
Medicare
Medicaid

SSI and Medicaid are needs-based programs, meaning the child must meet strict income and asset criteria to qualify. For example, a child receiving these benefits cannot own more than $2,000 in assets.

Without proper planning, leaving a significant inheritance directly to a special needs child could disqualify them from these programs. Many families—regardless of wealth—rely on these benefits to support their child’s care and quality of life.

The Role of a Special Needs Trust

A Special Needs Trust (SNT) is designed to provide financial support to a special needs child without affecting their eligibility for government assistance. The key is to structure the trust as a Supplemental Care Special Needs Trust, which ensures that:

Trust assets are used as a secondary source of support after all available government benefits are utilized.

The child’s basic needs are met throughout their lifetime, without risking their benefits.

This specific language is essential to prevent disqualification from programs like SSI and Medicaid while ensuring long-term care and financial security.

General Support Special Needs Trust

Alternatively, families with substantial financial resources may choose to establish a General Support Special Needs Trust. This type of trust is intended to:

Fully cover all financial needs of the special needs child.

Eliminate reliance on government programs such as SSI or Medicaid.

This option, however, requires careful consideration. Parents must be confident in their ability to leave sufficient assets to support the child independently for Life.

Choosing the right type of trust is a significant decision with long-term implications. Whether you need a Supplemental Care Special Needs Trust or a General Support Trust, proper estate planning ensures that your child is cared for financially while protecting their access to necessary benefits.

If you're ready to begin planning for your special needs child’s future, I’m here to help guide you through every step.


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