As the California parent of a disabled or special needs child, you face unique estate planning considerations, and the decisions you make while making plans for the future can have a huge impact on your disabled child’s life after your passing. At the Law Offices of Roshni T. Desai, we recognize that you have many options at your disposal when crafting your estate plan, and we have helped numerous clients facing similar circumstances uncover solutions that meet their needs.
Per CNBC, the lifetime care costs associated with providing for a special needs child can reach seven figures or more. Creating a special needs trust is one way you can help plan for your child’s future without impacting his or her ability to receive public benefits. More specifically, many special needs individuals currently have access to certain benefits that help them get by, such as Medicaid or Supplemental Security Income, but in some cases, leaving assets behind to your child can threaten eligibility for such programs.
Because these and some similar programs are need-based, leaving your disabled child assets in a standard will may actually disqualify him or her from being able to continue to receive public assistance. Leaving assets behind in a special needs trust, however, eliminates this threat, because assets left in this type of arrangement do not factor in when it is time to assess public benefit eligibility.
Another key benefit of a special needs trust is that the assets you leave in it are not the direct possessions of your beneficiary, which means they can go toward other purposes or causes once your special needs child passes on. You can find out more about trusts by exploring our webpage.