The following article will cover:
- Estate Planning Tools for Special Needs Children.
- Assessing Supplemental Government Benefits for Special Needs Family Members.
- Managing and Distributing Funds from a Special Needs Trust in Texas.
What Estate Planning Tools Are Commonly Used When Planning For Children With Special Needs?
Estate planning tools for special needs commonly involve the use of irrevocable trusts. These trusts typically have a trustee who is a different person than the beneficiary. When planning for government benefits like VA and Medicaid, it is essential to consider recovery by the state government after the beneficiary’s death.
In some cases, using irrevocable trusts or specific deeds, such as Lady Bird deeds in Texas, can help avoid recovery. Proper guidance is crucial to ensure that clients do not make mistakes in their planning.
Will Supplemental Government Benefits Be Enough To Provide For My Special Needs Family Member?
Supplemental government benefits may not be sufficient to provide for a special needs family member. Incorporating special needs trusts into an estate plan can ensure additional funds are available to support the special needs beneficiary above what the government provides.
While some families may have enough funds to support the beneficiary without government assistance, it is still advisable to include special needs language in the estate plan in case circumstances change in the future.
Who Will Manage And Distribute Funds From A Special Needs Trust In Texas?
The management and distribution of funds from a special needs trust can be assigned to a family member or a corporation, such as a trust company or trust department of a bank. While family members may offer personal interaction, managing a special needs trust can be challenging and time-consuming.
Some financial institutions provide better personal interaction with the special needs beneficiary, while others may not. It is essential to carefully consider and select the trustee to avoid conflicts, delays, and additional costs.
For more information on Planning For Children With Special Needs, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (972) 366-7201 today.