FAMILY LEGAL PLANNING
Proper Legal Planning is a critical component of special needs planning. For example,
there are generally three important considerations families must be aware of when leaving
inheritances in the name of the disabled child or sibling.
First, you must consider whether your child or loved one with special needs is
capable of managing the assets.
Second, the government will make a claim against the inherited assets to repay
it for the services provided to the disabled person. For many families government support
is substantial and therefore this claim could wipe out the inheritance.
Third, many families consider leaving the full inheritance to a sibling. This
choice has a number of potential problems. What if the sibling becomes selfish and uses
the money only for him or her self? What if they invest the money poorly and go bankrupt.
What if the sibling gets divorced? Half the proceeds meant for the special person could go
to the ex-wife. These scenarios happen every day. That is why it is important to do the
proper legal planning.
Last Wills and Testaments
These are carefully prepared Wills, preferably by an attorney who specializes in
Special Needs Law, with the clear intention of excluding the special needs person from
receiving any portion of their estate which may cause them to lose any or all of the
appropriate and necessary government benefits.
Special Needs Trust
This trust, prepared by a Special Needs attorney, attempts to provide future care
providers the maximum supplemental financial assistance to support the special person
while not jeopardizing government programs. The special needs person is the income
beneficiary. They receive trust funds for supplementary needs, but at the sole and
absolute discretion of the trustee. In addition the trust identifies who will receive any
remaining trust assets when the special person dies.
Generally, parents or close relatives serve as the initial Trustees. Although many
families use Corporate Trustees, as well. The trust agreement also lists Successor
Trustees. One of the great advantages of using a Corporate Trustee is that you can secure
professional management for your assets now that can last far into the future.
DISABILITY SERVICES & ADVOCACY, LLC CAN PROVIDE CORPORATE TRUSTEE SERVICES.
We included specific legal terminology and activities in this section involved in
Special Needs Legal planning. DISABILITY SERVICES & ADVOCACY, LLC is not a law firm but we do
work with many of the leading Special Needs Attorney’s. Contact us for a referral to
an attorney in your area. |
