Everyone needs to create their own estate plan. However, planning for individuals with special needs can be more complex and nuanced. This article does not offer legal or financial advice. It is essential to seek the guidance of an experienced attorney and financial advisor, especially those who specialize in working with families with special needs members. They can provide valuable counsel tailored to your specific situation.
1. Making Plans for Yourself Looking after someone else can mean you forget to look after yourself. Here are some ways you can make sure you're ready to help your special needs loved one for a long time:
- Share the job of making choices. Get your special needs loved one and people from your area or groups like Special Olympics to help out.
- Make sure you have time to relax and be with friends and family.
- Don't wait too long to start making your plans.
- Create your own will or trust.
2. Making Plans for Your Loved One With Special Needs
- Do you have experts you trust? Start planning by finding an attorney and/or financial advisor who has experience with the unique circumstances of individuals with special needs.
- Thinking about a Special Needs Trust (SNT)? Set it up so it safeguards government benefits your loved one may be entitled to. Your advisors can help you explore strategies for protecting trust and ABLE account funds from Medicaid payback rules.
- How will you fund the SNT? Think about if you have enough now or if you'll use assets like your house, life insurance, or savings. Be careful if you use money or assets owned by your loved one because Medicaid might want to get that money back after their lifetime.
- Who will be your trustee? Pick someone appropriate for the job and think about if you need a trust protector. Friends, family, or professionals might be right but you should be confident that they will handle their responsibilities well.
- Should you establish a guardianship? Think about the pros and cons of establishing guardianship when your loved one turns 18. If they can make their own decisions, they might not need a guardian. But if you don't set one up, you might need a conservatorship later, and that can be difficult and costly.
- If you do need a guardian, who should it be? Choose the right person as well as alternatives just in case. Talk about it with your loved one and look at family, care groups, or living homes.
- Should you open an ABLE account? This can help with extra costs, but make sure you talk to a lawyer who knows about these accounts because they have rules about Medicaid too.
- Do you have a letter that says what your loved one needs and wants? Write everything down, like medical information, school issues, daily living, fun activities, being part of the community, and big dreams for later.
- When should you update your plan? Go over your plan regularly, particularly when changes happen in life—financial circumstances change; new trustees or guardians need to be appointed; you relocate; and or when your loved one turns 18. Look at your plan every five years at least.
Planning for someone with special needs can be tough, but with the right help, friends, and early planning, you can make a good plan for your loved one and your family.
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