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Planning for Special Needs: 5 Things You Need to Know BY LESLIE V. MARENCO, ESQ.
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HE DAY TO DAY CONCERNS OF CARING FOR A CHILD WITH special needs are profound. Add on the responsibilities of parenting other children and maintaining a happy home, and you end up with little to no time to plan for the future care of your child with special needs. And in today’s information saturated world, researching tools and sources for support can feel ironically overwhelming. So here’s an easy to digest list of some of the most important things you should know about future planning for your child with special needs:
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SECURE ELIGIBILITY FOR GOVERNMENT-FINANCED PROGRAMS When reviewing the child’s need for governmental benefits, take care to distinguish between those that are means-tested and those that are not based on the individual’s income or assets. Means-tested benefits are reduced or denied when income or assets are above certain limits. Although there are others, the two primary means-tested benefits that will be important in most instances are Supplemental Security Income (SSI) and Medicaid. Both have strict asset and income requirements in order to qualify. If eligible, Medicaid will cover long-term health care which can be extremely important for a child with disabilities. SSI is a Federal program which provides a monthly income supplement to meet basic needs such as food, clothing and shelter. The various programs have different rules regarding the treatment of unearned income and in-kind support from third parties. These differences often dictate the provisions that should be included in the client’s estate planning documents. The goal is to assure that the child is not disqualified from these programs by assets placed in his name.
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TURNING 18. The legal significance of the 18th birthday is often overlooked when it comes to children with special needs. Once your child turns 18, he or she is officially an “adult” in the eyes of the law and able to enter into contracts, vote, and exercise all rights available to adults. As your child grows, it is imperative to evaluate his or her mental ability to function in society; and if you feel they are incapable of handling their own affairs, you should speak to an attorney about becoming your child’s legal guardian. Florida has adopted special procedures that make it easy to appoint guardians for individuals with developmental disabilities such as autism or cerebral palsy. By becoming your child’s legal guardian you will have the legal ability to act on your child’s behalf and make the best decisions for their well-being.
OBTAIN HELP FROM PROFESSIONALS. Although there are many support groups and community services available to assist parents who have children with special needs, at some point it becomes necessary to obtain help from competent professionals. In our experience, the best estate plans developed for families who have children with special needs arise from a team approach. In addition to the special needs planning attorney, it is critical that the family’s accountant, insurance and financial advisors be involved in the process. Of course, the family is an integral part of this process as well. If appropriate, the individual with special needs should be included in these discussions to the extent possible. In these types of situations, it is critical for advisors to listen to the needs and concerns of the family. Only after hearing their needs and concerns, can an appropriate estate plan be designed.
SET A GOAL FOR YOUR PLANNING. Planning must assure appropriate management of finances and personal decisions in the event of disability or death of both parents, with a goal towards avoiding future problems. Parents might also need to continue making decisions for a child with special needs during adulthood, provide for future residential needs, and find someone to care for the child when they are no longer able.
MAKE SURE YOU HAVE THE ESSENTIAL DOCUMENTS. A common misconception about estate planning is that it is only for the “wealthy.” But estate planning is a fundamental tool that enables you to provide for the care of your child with special needs when you are gone or incapacitated. Important decisions such as who will be the guardians of your children and the specifics how they will be taken care of financially should be made and documented to ensure your children are cared for when you can no longer be there for them. There are also important estate planning tools available such as Special Needs Trusts which allow you to financially provide for your child while preserving their qualification for government assistance. These trusts can provide funds to pay for certain expenses that can enhance your child’s quality of life, from psychological treatment to movie tickets or music lessons. And if you don’t have assets to leave behind, a life insurance policy is an affordable way to financially secure your children’s futures, especially in terms of funding a Special Needs Trust. When planning for the future it is essential that you have all your document in order. As a general rule, we should keep our estate planning documents in a safe place, which is readily accessible in the event they are needed. For a detailed description of what documents you will need check out our free report: 10 Must-have documents for parents of children with special needs. You can email my friendly assistant Mary and she will be happy to email it to you. She can be reached at Mary@mwprmlaw.com.
The Florida Villager
06.2016
When planning for the future of your family and your child with special needs, remember that there are many avenues of support- you don’t have to do it all yourself! Speak with someone experienced in planning for families with special dynamics. Reaching out for help will make planning for the future care of your child much more feasible- and once the planning is all done, you’ll enjoy the peace of mind that you’ve set your child up for a healthy and successful future.
Aren’t sure about coming in to see us yet? That is okay. I feel it is so important for you to name legal guardians for your kids now to make sure they will never be raised by anyone you wouldn’t want, that I made an easy website for parents. It’s free, it’s easy and now there are no excuses. Simply visit kidsplanfl.com and take the first step to protecting your kids – Absolutely FREE. Just want some more information? Here is a bonus for inquisitive parents: Get your free book on legal planning for young children! Go to: kidsplanbook.com. Read this book & you’ll know your kids and money will be taken care of, no matter what anything happens to you. Call our office at 305.707.7126 for more information.