This is an area of estate planning that can be incredibly beneficial to those individuals who have been dealt a tough hand.  For parents of a special needs child there is an extra incentive to do everything correctly including making sure that they have done the proper estate planning.

Obviously when one has a child with special needs, one has a responsibility that lasts a lifetime.  Many parents become “experts” in their child’s situations as they deal with medical, educational, and therapeutic professionals.  With special needs children, it rarely gets easier.  Rather, the challenges change.

Virtually every parent of a special needs child, concern themselves with what will occur when they are no longer around.  People want their child to continue to have the care that they have provided and yet worry about who will care for their child and the cost associated with the care.  Estate planning attorneys contend that they can benefit virtually all families – it is especially true of those families that contain an individual with special needs.

It is important that planning is done because if a child inherits assets directly it may adversely affect the benefits that the special needs child is receiving from the government.  The idea is that the recipient of government benefits should not have his or her own assets.

A special needs trust is a trust that has been entered into by the parent or parents of a special needs child.  Frequently its creation is provided for in the underlying living trust.  The special needs child is almost always the only beneficiary of the specific special needs trust.

Most of the time a special needs trust is irrevocable – meaning that it cannot be changed.  Moreover, it generally provides so that the trust benefits do not interfere with or duplicate the benefits that the individual is receiving from the government.  There is special language that needs to be used so as not to interfere with the government benefits.

The trustee is given specific instructions on how to distribute assets and is told not to act in such a way that will cause the government benefits to be lost.  Once again, the provisions should be drafted by an experienced estate planning lawyer.

As in any situation that calls for a trustee, care should be taken in determining the identity of that person.  Additionally, a second and third choice should also be indicated in the special needs trust.  One of the jobs of the attorney, is to guide his or her client in this area.

Depending on the amount of money in the family, life insurance may be used to fund the special needs trust.  In any event, a properly drafted special needs trust can almost guarantee that the special needs child will both continue to  receive the government benefits that he or she is legally entitled to receive as well all the extras that the law allows for him or her to have.

Taking the time to meet with an estate planning lawyer to create a special needs trust will be one of the wisest investments of your life.  It will give you peace of mind to know that you have done what you can to benefit your child.