Q: Why is it so important for us to plan for the future?
A: People with special needs live longer today and a well prepared plan helps ensure they also live a good life. Parents also worry what will happen to their kids with special needs after they pass. A plan not only secures their child’s future, but relieves so much of their anxiety.
Q: What is included in a special needs plan?
A: A well designed special needs plan has three parts: 1) Legal documents, authorizing the people you want to care for your child, 2) A lifestyle guide so they know how to care for your child, and 3) a financial plan to ensure your child has a stable, comfortable life.
Q: How much does a plan cost?
A: It depends on how extensive it is, but usually $6,000-$8,000––far less than a typical law firm would charge.
Q: What happens if I don’t have a plan?
A: The state of California decides who gets your assets and who will care for your children, including your adult children who cannot take care of themselves.
Q: When should we begin this process?
A: Because you’re probably living with the anxiety of not having a plan, putting together one now saves you having to carry it. But there are also huge financial benefits to starting early.
Q: How long does it take?
A: The average time is about two months. We don’t rush anyone through the process, but a plan can be completed in as little as four weeks.
Q: What is a Special Needs Trust?
A: A Special Needs Trust enables families and friends to leave assets to the person with special needs, without those assets sacrificing their government benefits.
Q: Do we have to have a large estate to create a Special Needs Trust?
A: No. Since the person with special needs cannot have more than $2,000 of assets in their name to qualify for certain government benefits, a Special Needs Trust is essential for even a few thousand dollars.
Q: Is there any risk leaving assets to other family members designated to provide for the person with a disability?
A: Yes, even though you trust others to use your assets to provide for your loved one, problems can arise that they will have no control over. If assets are left to another person, those assets legally belong to them, so if that family member has debt, a lawsuit, divorces or passes away, those funds designated to help your special needs child are at risk. Thus, it’s best to name trusted family members as Trustees in the Special Needs Trust.
Q: What is the best way to make sure my child is cared for correctly when I’m no longer able to take care of them?
A: The most important part of any plan is the Guide to your special needs child. It provides all the information future care providers will need to know in order to understand the person with special needs. Details and videos about their personality, abilities, diet, medication, therapy, social activities, mannerisms, etc. are included.
Q: What are the key issues to address in planning for the future?
A: The first, Lifestyle, addresses the day-to-day assistance, medical, social, employment and other activity care requirements. Next, Legal Planning includes Wills, Special Needs Trusts, Guardianship, and Trustees. And third , Financial Needs involves the calculating the person’s monthly budget and how much is required for the Trust to provide lifetime income for care. Identifying assets to fund the trust and projecting the effects of inflation are also a part of this planning. The final item, Government Benefits, identifies the various Social Security and medical benefits including: SSI, SSA, SSDI, Medicare, Medicaid, and military pensions.
Q: As a parent, do I retain the same legal authority on behalf of my child after they reach age 18?
A: No. Every American citizen is an “emancipated adult” when they reach age 18. Anyone, including parents, must petition the courts to be appointed legal guardian. An alternative to legal guardianship is a “Legal and Medical Durable Power of Attorney” in which a person gives another the right to make medical and legal decisions on their behalf at a time when the person is unable. The person with special needs must be able to sign and fully understand this document.
Q: Whom can I choose to serve as a Guardian and/or Trustee?
A: Anyone you trust to fulfill your wishes and provide the best care and attention for your loved one can be a trustee. You can select a relative, friend, financial institution, or charitable organization.