Special Needs Financial Planning Recommendations
The following article will provide some recommendations regarding the financial planning of families with special needs members.
What is special needs planning?
Special needs planning is the process of developing a future plan for a person with an intellectual or developmental disability. This is crucial because it ensures that the person with special needs is provided for in the event that a parent, guardian, or other caretaker becomes unable to provide care for this person. A future plan should be created with input from the person with special needs, his parents, caregivers, doctors, siblings, and any other people who are important to him and are crucial to his future success.
Special needs financial planning recommendations
The following section provides financial planning recommendations for families with special needs family members.
- Prepare a guide for the future care of your loved one with special needs. It is important that you take the appropriate steps now to provide for your loved one with special needs when you pass away. You should assume that housing, employment, and other adulthood transitioning issues will be significant challenges for this person in the future and start planning accordingly.
- Make sure that your family has advocates and fiduciaries. After sharing your future plan with your family members, you should ensure that you appoint advocates and fiduciaries who will put your family’s interests first after you pass.
- Consider using a supplemental needs trust rather than disinheriting your family member with special needs. Supplemental needs trusts allow a beneficiary with a disability to receive inheritances, gifts, lawsuit settlements, or other funds without losing their eligibility for certain government programs, such as Medicaid and Supplemental Security Income (SSI).
- Carefully choose the guardian and trustee for your family member with special needs. It is very important that you take the time to figure out which person would best promote the interests of your family member with special needs. You will want to make sure that this person will strictly adhere to the future plan that you have developed.
- Coordinate your planning with your relatives’ planning. As soon as your plan is finalized, you should share this plan with your family members, so that they are able to fully understand your wishes and so that they do not jeopardize the receipt of any governmental benefits due to a lack of understanding.
- Take advantage of any income tax breaks. You should work with an accountant who is familiar with supplemental needs trusts and disability related deductions so that you can learn more about any tax breaks you are entitled to.
Do You Need Special Needs Planning Assistance? Our Firm Can Help
It is crucial to develop a future plan for family members with special needs. If you need assistance with special needs planning, our firm can help. Contact the Norwood estate planning lawyers at Fisher Law LLC today.