When creating an estate plan, parents of special needs children need to be extra careful to be sure that they have properly provided for the continued care of their special needs child after their death. However, many parents continue to put off estate planning, sometimes with disastrous consequences.
A recent article discusses some basic estate planning tips for parents with special needs children. One common problem that parents of special needs children often face is that the costs of caring of special needs child often makes it difficult for them to save for the future. One way to combat this problem is through purchasing a life insurance policy. While this move inevitably raises the cost of bills each month, purchasing a life insurance policy provides a guarantee that there will be cash for your child after your death.
Some parents may want to consider a special needs trust (“SNT”). These are a special version of trusts that enable parents to leave their special needs child with assets from their estate in a way that does not interfere with the child’s ability to receive public benefits such as social security. Furthermore, through a special needs trust, parents can specify where the child will live, and who will provide the child’s primary care.
