What Does Having a Disabled Child / Adult Mean for Estate Planning

Having a disabled child may mean your estate plans differ from that of other parents.  For the parents  of disabled children, estate planning is important.  Experts note that one of the biggest mistake parents make is waiting to long to set up necessary trusts for their child to transition into adulthood, as seamlessly as possible.

It may be hard to think about, but select a guardian. A guardian is necessary if your child either has not reached the age of majority, or may require assistance / lack the skills to live independently.

Parents should carefully select the person or institution that will be able to best care for the child.If parents do not make this designation, the possibility that the court will select a person or institution that the parents would not have selected is very real.

Without proper parental estate planning, a disabled child who is unable to live independently may be at risk for a variety of reasons. Here are just a few other considerations:

1.  An inheritance may negatively impact a child’s ability to collect public assistance. That is why many parents with disabled children consider setting up a Special Needs Trust. These trusts,designed for disabled beneficiaries, allow parents to transfer assets to their disabled child without impacting his or her ability to collect public assistance because the inheritance isowned by the trust.
2. When setting up a Special Needs Trust, one should begin by calculating how much money a child will need in order to provide the desired level of care for the expected duration of his or her life. Making sure to factor in for the child’s anticipated public assistance payments, andprovide for emergencies.
3. Some parents who lack the means to set up these types of estates have found it a favorable alternative to disinherit the child rather than eliminate public assistance funds.
4. Personal funds in excess of two thousand dollars may deem an adult with special needs ineligible for various federal and state funding.

Find out more on Guardianship in Florida. See http://www.pankauskilawfirm.com/ for videos and information on Guardianship Law, Court-Appointed Guardians, and Power of Attorney.