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Special Needs TrustsFew events in life are as difficult and overwhelming as learning your child has special needs. We understand that planning for your child's future is stressful and full of uncertainty because we, too, are parents in the special needs community. We help families of children and adults expand opportunity for government support and protect assets for the individual with special needs .
Together, we create a family plan using Special Needs Trusts that allow you to provide for your child and avoid risking their government benefits. Planning enables you to protect your child's quality of life and finances long after you are gone. |
If you have a child with special needs, you may have been given the common advice not to have assets in your child’s name. When a child turns 18, he or she is then a legal “adult” and can then become eligible for various government benefits such as Supplemental Security Income (SSI) and Medicaid (and in some cases, Medicare). However, both of these benefits require that the child own less than $2,000, not just upon turning 18, but for a period of several years prior to reaching age 18, and indefinitely thereafter.
Parents, grandparents, and family friends struggle to understand how they can then gift presently or leave assets to the child in the future without causing disqualification for government benefits. Solution: establish a Special Needs Trust. Parents can then also designate a Trustee who can manage the assets for the child, as well as control the distributions and child’s ability to access the funds. Trust assets can then be used to “supplement” the government benefits the child is already receiving to maximize the child’s quality of life.
It is very important to establish a Special Needs Trust for your child as soon as possible, even if he or she is too young to qualify for governmental benefits, and even if your child’s challenges may not be a lifelong disability. A Special Needs Trust can accept gifts and inheritances from family and friends without interfering with your child’s governmental benefits qualification. Gifts or inheritances given directly to the child, outside the Special Needs Trust arrangement, can cause the child to be disqualified for other benefits or require the child to reimburse the state for services received. You may designate alternative beneficiaries in a Special Needs Trust (such as your other children or family members) to avoid having to reimburse the government for services provided to your child. Assets of Special Needs Trusts are also protected in a parents’ divorce, serve as a safe vehicle for divorced spouse’s contributions, and are safeguarded from liability.
Parents, grandparents, and family friends struggle to understand how they can then gift presently or leave assets to the child in the future without causing disqualification for government benefits. Solution: establish a Special Needs Trust. Parents can then also designate a Trustee who can manage the assets for the child, as well as control the distributions and child’s ability to access the funds. Trust assets can then be used to “supplement” the government benefits the child is already receiving to maximize the child’s quality of life.
It is very important to establish a Special Needs Trust for your child as soon as possible, even if he or she is too young to qualify for governmental benefits, and even if your child’s challenges may not be a lifelong disability. A Special Needs Trust can accept gifts and inheritances from family and friends without interfering with your child’s governmental benefits qualification. Gifts or inheritances given directly to the child, outside the Special Needs Trust arrangement, can cause the child to be disqualified for other benefits or require the child to reimburse the state for services received. You may designate alternative beneficiaries in a Special Needs Trust (such as your other children or family members) to avoid having to reimburse the government for services provided to your child. Assets of Special Needs Trusts are also protected in a parents’ divorce, serve as a safe vehicle for divorced spouse’s contributions, and are safeguarded from liability.
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The goal of a Special Needs Trust is to provide anything and everything governmental benefits do not, as well as medical, dental and therapeutic treatments otherwise not covered; recreational activities; travel and related assistance; or additional support services and respite care to assist your child’s providers. Remember, even children that live entirely independently may still have a need for a variety of supplemental supports. |
Consideration in your will for special needs children
Your Will names the guardian(s) you have chosen for your child(ren), along with any specialized professional(s) you designate to advise on your child’s care, education and services. Families often direct that the primary guardian consult with therapists, doctors, advocates, or others familiar with your child and his or her care, therapies and services. For divorced parents of special needs children, it is critical to be sure your former spouse and in-laws understand how to properly provide for your special needs child in their estate planning documents.
In your Will, you also confirm your own burial wishes and the distribution of your property. In Illinois, if you die without a Will, state laws will govern the distribution of your estate. A Will is often drafted together with a Revocable Trust or a Special Needs Trust, depending on your family structure, financial scenario and other children. Trusts can accomplish many purposes: avoid the time-consuming, expensive and very public probate process; allow you to take advantage of estate tax laws; provide for your dependents’ or children’s well-being in detail; and, help avoid disputes over the assets in your estate. Placing your assets in trust can also make the transition of ownership go much more smoothly for your heirs. Not every individual needs or should have a Revocable or Special Needs Trust; we can help you decide whether a Revocable Trust, Special Needs Trust, or a combination of the two is right for you.
In your Will, you also confirm your own burial wishes and the distribution of your property. In Illinois, if you die without a Will, state laws will govern the distribution of your estate. A Will is often drafted together with a Revocable Trust or a Special Needs Trust, depending on your family structure, financial scenario and other children. Trusts can accomplish many purposes: avoid the time-consuming, expensive and very public probate process; allow you to take advantage of estate tax laws; provide for your dependents’ or children’s well-being in detail; and, help avoid disputes over the assets in your estate. Placing your assets in trust can also make the transition of ownership go much more smoothly for your heirs. Not every individual needs or should have a Revocable or Special Needs Trust; we can help you decide whether a Revocable Trust, Special Needs Trust, or a combination of the two is right for you.
