Your loves ones with special needs require specific planning.
You have begun to worry about your child with special needs.
You are reasonably certain your child will outlive you.
When this happens, you do not want to leave your child financially vulnerable.
According to a recent NWTimes.com article titled “Planning for loved ones with special needs,” you will need to undertake special needs planning as part of your estate planning.
Individuals with disabilities often qualify for public benefits for their health care, supplemental income, and other resources.
Because these are often “means tested,” leaving an outright inheritance can trigger unintended consequences.
An inheritance can disqualify your child from much-needed benefits.
Your child may receive a “re-determination” letter from the Social Security Administration.
What does this mean?
The Social Security Administration will scrutinize their benefit eligibility.
Depending on the findings, your child could lose benefits or be required to payback previously disbursed benefits.
How do you protect your loved one from losing benefits?
Start by hiring an experienced elder law attorney or estate planning attorney with a focus on special needs planning.
These professionals will be able to create a plan so you can provide financially for your loved one with special needs while satisfying the “means test” for public benefits.
Because laws often change, you should review your plan every three or four years.
Reference: NWTimes.com (June 21, 2020) “Planning for loved ones with special needs”