Estate Planning For Special Needs Children

The following article will cover:

• Key considerations when creating an estate plan for parents who have a child with special needs.
• The role of guardianship in special needs and estate planning, and how families should approach the decision to choose a guardian.
• The importance of reviewing and updating special needs estate planning documents to reflect changes in circumstances.

What Are The Key Considerations When Creating An Estate Plan For Parents Who Have A Child With Special Needs?

Creating an estate plan for a child with special needs largely depends on the child’s unique circumstances. There are two main types of special needs trusts. One involves a privately funded trust set up by the family, which is suitable if the family has substantial resources.

The alternative is joining a pooled trust, such as Wispact or Prairie Trust in Wisconsin. These trusts accumulate assets from several sources, including contributions from charitable organizations. You contribute what you can, and any remaining funds in the trust after your child no longer requires special care or passes away typically remain in the trust to assist other individuals with special needs.

What Role Does Guardianship Play In Special Needs And Estate Planning? How Should Families Approach The Decision To Choose A Guardian?

Choosing a guardian for a child with special needs is a process that mirrors planning for young children but with added considerations due to the child’s special needs. The chosen guardian should be understanding and comfortable dealing with the child’s unique requirements. For instance, if the child has severe autism, the guardian should have an understanding of this condition.

How Often Should Special Needs Estate Planning Be Reviewed And Updated To Reflect Changes In Circumstances, Laws, Or Regulations?

While Wisconsin updated its trust code in 2014, thus expecting no major changes on the state level for a considerable time, it’s vital to keep an eye on federal regulations, including the tax code that impacts estate planning. With the estate tax exemption currently exceeding 12 million dollars federally, and no estate tax in Wisconsin, changes in these laws could significantly affect your estate plan.

When Setting Up Our Estate Planning Documents For A Special Needs Child, Can We Also Plan For Their Transition To Adulthood?

Yes, the terms of the trust can dictate when your child inherits the money, aligning with their level of development and competency to manage their funds. You can anticipate potential scenarios and incorporate these into the trust document, thereby providing a blueprint for how the trustee should manage the assets for your special needs child.

What Resources Or Professionals, Such As Special Needs Attorneys, Can Assist Families In Creating An Effective Estate Plan For Someone With Special Needs?

Special needs planning attorneys can provide valuable assistance in creating an estate plan for someone with special needs. These attorneys possess specific knowledge of tax codes and requirements of various government assistance programs, which can be complex. Consulting a specialist is important in the area of special needs estate planning. For more information on Estate Planning For Special Needs Children, an initial consultation is your next best step.