FAMILY LEGAL PLANNING

Proper Legal Planning is a critical component of special needs planning. For example, there are generally three important considerations families must be aware of when leaving inheritances in the name of the disabled child or sibling.

First, you must consider whether your child or loved one with special needs is capable of managing the assets.

Second, the government will make a claim against the inherited assets to repay it for the services provided to the disabled person. For many families government support is substantial and therefore this claim could wipe out the inheritance.

Third, many families consider leaving the full inheritance to a sibling. This choice has a number of potential problems. What if the sibling becomes selfish and uses the money only for him or her self? What if they invest the money poorly and go bankrupt. What if the sibling gets divorced? Half the proceeds meant for the special person could go to the ex-wife. These scenarios happen every day. That is why it is important to do the proper legal planning.

Last Wills and Testaments

These are carefully prepared Wills, preferably by an attorney who specializes in Special Needs Law, with the clear intention of excluding the special needs person from receiving any portion of their estate which may cause them to lose any or all of the appropriate and necessary government benefits.

Special Needs Trust

This trust, prepared by a Special Needs attorney, attempts to provide future care providers the maximum supplemental financial assistance to support the special person while not jeopardizing government programs. The special needs person is the income beneficiary. They receive trust funds for supplementary needs, but at the sole and absolute discretion of the trustee. In addition the trust identifies who will receive any remaining trust assets when the special person dies.

Generally, parents or close relatives serve as the initial Trustees. Although many families use Corporate Trustees, as well. The trust agreement also lists Successor Trustees. One of the great advantages of using a Corporate Trustee is that you can secure professional management for your assets now that can last far into the future.

LIFE PLANNING INSTITUTE CAN PROVIDE CORPORATE TRUSTEE SERVICES.