Having a child with special needs means planning for her future more extensively than you would your other children. It also means planning for her day-to-day care after you have passed away. There are many important details to take care of to ensure the best possible life for your child, including estate planning. The laws can be confusing, so you should contact a professional with experience in special needs planning. Here are some tips from the pros:
Make a Binder. Bernard A. Krooks, J.D., CPA, LL.M, CELA, is a founding partner of Littman Krooks LLP and an expert on special needs planning. He advises keeping a binder of all of the important documents including birth certificates, social security cards, health insurance cards, written instructions spelling out wishes for final burial arrangements, living wills, health care proxies, and financial directives. Krooks explains that having these in one spot will save your family from the stress and confusion that might distract from your child’s care. He also says to include a “Letter of Intent” that is updated once a year. It should contain detailed information about the care your child needs and her preferences regarding her daily routine. Read Krooks’ article on Forbes.com to find out what additional information should be included.
Establish a Special Needs Trust. Donald D. Vanarelli, a New Jersey Elder Law attorney who specializes in special needs planning advises that you create a Special Needs Trust. Fund it with your own assets in order to maintain your child’s eligibility for state benefits. If you use retirement plans such as IRAs, 401ks or 403bs to fund the SNT, these should accumulate inside the SNT. If your child has her own assets, Vanarelli says to help her create a first party, self-settled SNT.
Don’t Disinherit Your Child with Special Needs. Kristen M. Lewis, attorney at Smith, Gambrel and Russell is a member of the Academy of Special Needs Planners. She says that the practice of disinheriting your child is outdated and that SNTs can supplement your child’s government benefits.
Coordinate The Estates of Other Family Members. Lewis says that parents should work with relatives who want to help plan for the future of the child with special needs. Make sure these relatives are up-to-date on the correct legal practices in order to avoid the loss of your child’s government benefits.
Build a Team. Lewis advises that you create a team of professionals to assist you, including a life care planner, a life insurance professional, an investment adviser, a government benefits specialist, a special needs advocate, a special education expert, an estate planning attorney, a home accessibility expert, and an accountant. Make sure each person is familiar with special needs laws.
Appoint an Appropriate Guardian. All experts agree that choosing the guardian for your child takes careful consideration. Once your child is 18, you or the guardian can no longer legally make health care decisions for them unless you are a court-appointed guardian.
Each of these experts has more extensive advice on their web pages.