Special Needs Planning
Understanding Special needs planning
Clients who are including special needs beneficiaries (typically, parents of children with disabilities) need to start with the same estate planning as any other client. That is, they will need to decide on distribution, agents in various roles, and whether to use a will or trust as their main estate planning vehicle.
However, in addition to that planning, they typically will also need a special needs trust for the child with disabilities.
If properly designed and set up, a special needs trust allows funds to be allocated for benefit of the beneficiary, while allowing them to qualify for public benefits. Some trusts also allow the beneficiary to become eligible for certain grants programs during their lifetime.
Decisions when creating a special needs trust
Although setting up a special needs trust does require more work than typical estate planning, it is often less difficult than our clients expect. During our initial consultation, we discuss:
Whether a special needs trust is necessary.
How to determine the special needs beneficiary’s share.
The different types of trusts available and the benefits and drawbacks of each.
The appropriate person or entity to use as trustee (manager of the trust) and advisor to any professional trustee.
Whether a pooled special needs trust (typically, a WisPACT trust) is an appropriate fit.
Eligibility for grants programs that cover the costs of setting up a special needs trust.
Have Questions?
For those who would like more information before they schedule, we have prepared several articles that explain the details. They cover:
We are also happy to answer questions during a consultation.
Next Steps
As with all of our estate planning work, estate plans that include special needs beneficiaries start with a no-obligation consultation to answer questions and work on a first draft of your plan. For busy parents, we offer the option of a zoom consultation.
We look forward to working with you!