A special needs trust is essential for protecting a loved ones quality of life and access to government benefits.
When drafting a special needs trust for your disabled child or other special needs family member, you want to make sure that there are no mistakes that could jeopardize their financial future and care.
But too often, mistakes are made and can go undetected until it is too late. When creating special needs trusts in Doylestown, beware of these common mistakes.
For centuries, trusts have allowed parents to set aside money for that their children could access when they got older.
But for some parents, it’s not that simple. If you have a child or other loved one with special needs, you might worry about how they can support themselves after you’ve gone.
That’s where a special needs trust comes into play. This is a trust set up to help a disabled person who receives government benefits such as Medicaid or Social Security. It is administered by a trustee, who can be a relative, friend, or someone you designate to handle the trust.
There is new legislation that allows for a family that has a loved one with special needs to set up an ABLE Savings Account. The Stephen J. Beck, Jr. Achieving a Better Life Experience Act (ABLE Act) was signed into law in December 2014. This law allows states to create their own ABLE programs. Previously, Special Needs Trusts were the only way a family could save money for a special needs individual without losing eligibility for SSI and Medicaid benefits. But now with the availability of ABLE Savings accounts, families have another option to save for their disabled loved one’s future.
A special needs trust is essential for protecting a loved one’s quality of life and access to government benefits.
Estate planning is nothing new. People know about the importance of having an up to date will, living will and power of attorney and most have these documents at the ready. What if you have a child with a severe physical or mental disability and he or she will not be able to support him or herself? How can you plan for your child’s care when you are no longer around? That’s where special needs planning comes in.
Before consulting with an expert (this is not a do-it-yourself project) you need to organize your and your child’s financial and medical information. Like many people, you probably have social security numbers, phone numbers, etc. in various places. That is why it is important to have this information in an easy to access place. Click here to see what information needs to be gathered and documented.
For the parent or guardian of someone with special needs, government benefits can be confusing. Between the acronyms, eligibility requirements and applications, caregivers often have misconceptions about their loved one’s eligibility or how to apply for benefits.
A large portion of special needs planning involves helping people with special needs receive the benefits to which they are entitled. Public benefits offer a wide range of assistance for living expenses and care options. These benefits work as a foundation for the care and support for individuals with special needs.
Below are a few public programs that provide care and support for families caring for a loved one with special needs.
Many parents of children with special needs ask themselves: Who will care for my child once I am no longer able to? Where will he or she live? Where will financial support come from? Who will advocate for my child? What will happen when he or she reaches adulthood?
These are common questions, which all should be asked in preparation for when parents can no longer care for their child due to advancing age or death. By planning for your child’s future now, you can establish parameters for the level of care needed in the future and prepare your family for their roles and responsibilities in your child’s future.
Begin Planning Early
A small amount of planning now in preparation for a child’s care as an adult can help parents avoid a crisis in the future. To begin special needs planning, parents should consider meeting with an elder law attorney to having the following documents drawn up: a durable financial power of attorney, a medical power of attorney, a letter of intent, physician’s directive or living will and, if appropriate, a declaration of guardianship. These documents will facilitate the care of your adult special needs child, and will help ensure that he or she will be eligible for public benefits.
For families with loved ones who have special needs planning and preparing for the future takes time and thoughtful consideration. Care options, estate planning and how the special needs person will be cared for when you are gone are common concerns.
Through advances in day-to-day care and modern medicine, people with special needs are living longer, healthier lives, which makes proper estate planning more important for you than ever.
When you have a child or loved one with special needs, many legal documents are needed. Once you have started planning for your loved one’s future, keep these ten documents on hand with your estate planning records:
Finding the best type of education is a top priority for parents and guardians of special needs children. Along with the many other decisions you make when caring for your child, you must decide which type of special education will give your child the support and guidance he or she needs.
Special education programs are created to give students extra support and the specialized education that they need. Because each child is unique, schools work to create an education plan that best suits the student. Here are some common special education options that are traditionally offered in schools.
SSI is the basic federal safety net program for the elderly, blind and disabled, providing them with a minimum guaranteed income. For 2014, the maximum federal SSI benefit is $721 a month for an individual and $1,082 a month for a couple. These amounts are supplemented in most states. For example, Pennsylvania adds a supplement of $22.10 a month for eligible individuals.
A health care power of attorney is an essential part of your estate plan.
When planning for the future of an elderly family member or child with special needs, you should consider preparing a powers of attorney. Powers of attorney are a simple and inexpensive way to help manage financial and medical accounts if you or your loved one is no longer able to make decisions clearly. For reasons of simplicity and clarity, it is usually better to have separate financial and medical powers of attorney.
Powers of attorney eliminates the worry and stress of managing financial and medical accounts during a time of incapacitation. Powers of attorney are prepared by your attorney and give control over financial and medical accounts to an agent, who is normally a family member or trusted friend. The agent is then granted legal authority to manage the principal’s accounts, usually while he or she is unable to.