The principal purpose of a third-party created and funded SNT is to provide an inheritance for the special needs child without risking the loss of important government benefits such as SSI, Medicaid, etc. Consequently, it is important that grandparents and other relatives (including the siblings of the special needs child)…
There are five estate planning options available to parents concerning their special needs child: (1) Distributing assets outright to the special needs child (not recommended since the assets may disqualify the child from receiving means-tested government benefits); (2) Disinheriting the special needs child (generally not recommended since the child will…
Tax planning should not be ignored when preparing an estate plan that involves a special needs child. There is a general (and incorrect) assumption among some estate planners that taxes are of little or no concern to families of special needs children. Income taxes, estate taxes, gift taxes, and the…
Five Essential Estate Planning Documents For A Special Needs Family. At the minimum, a special needs child deserves a parent’s continued stewardship and guidance, even though the parent may be incapacitated or deceased. Therefore, the parents of a special needs child should typically have the following five estate planning documents…
In addition to the usual hurdles that parents face when preparing an estate plan (e.g., who should be the guardian, trustee, executor, etc.), the parents of a special needs child are faced with five unique estate planning challenges: (1) How to provide for all of their loved ones without jeopardizing…