Children are a gift. Yet, like most gifts, there are costs involved. When the child in question is a special needs child, the Colorado parent typically discovers that there are additional steps that must be taken in order to ensure that this child is properly cared for in case the parent is no longer able to do so. Special needs planning can play an important role in giving the parents the assurance they need, and the child the security he or she needs, just in case.
With the health care advances that Americans now enjoy, the likelihood that the Colorado resident will live longer is greater. This is great news for some and an added concern for others. When the individual in question is special needs, there are numerous other challenges that must be addressed.
For the parents of a special needs child, plans to take care of the child in case something happens to the parents must be addressed. One primary consideration is who to name as beneficiary. In most cases, this needs to be someone other than the special needs child. If this child directly inherits too much, he or she may become exempt from the government benefits to which he or she is entitled.
Additionally, a special needs trust may be established to pay for the special needs child's care. Again, care should be taken in establishing and funding such a trust. Furthermore, the individual named as trustee should be someone who makes sure that the parent's wishes are fulfilled and the special needs child is properly cared for. Special needs planning is a critical part of estate planning for the Colorado family with a special needs child. Experienced legal counsel can offer guidance in how to best protect the child.
Source: Forbes, "4 Important Financial Planning Considerations If You Have A Child With Special Needs", Christopher Young, May 15, 2018