If you have a child with special needs and you pass away without an estate plan in place, they may face significant challenges and uncertainties regarding their care, financial support and overall well-being that could have been prevented or minimized had a plan been put into place.
Estate planning is often especially critical for families with children who rely on unique kinds of support. Making this effort allows parents to designate the most suitable guardians, work to ensure that financial resources are available and minimize disruptions to any benefits that their child may receive. Without a plan, important decisions will be left to the court and state systems, which is an outcome that most Americans would understandably prefer to avoid.
Guardianship decisions
If you pass away without creating an estate plan, the court will appoint a guardian for your child with special needs. This process can be time-consuming, and the person appointed by the court may not be the individual you would have chosen. By not designating a guardian in your estate plan, you risk having someone unfamiliar or ill-equipped to meet your child’s unique needs. Naming a trusted guardian in your estate plan better ensures that someone who understands your child’s needs and shares your vision for their care will be responsible for them if something happens to you.
Impact on government benefits
Many children with special needs and dependent adults rely on government assistance programs, such as Supplemental Security Income (SSI) and Medicaid, to meet their health care and daily living needs. If you leave assets directly to your child without a proper plan, such as through a will or traditional inheritance, it could jeopardize their eligibility for these benefits. Drafting an estate plan will allow you to craft a special needs trust that safeguards their eligibility for government benefits.
Making this effort
Passing away without a plan leaves your child’s financial and practical security uncertain. An estate plan allows you to allocate resources effectively, better ensuring that funds are available for your child’s lifetime needs. Additionally, you can include specific instructions about their care, routine, preferences and medical needs, helping future caregivers provide a familiar and supportive environment in the event that you can no longer do so on your child’s behalf.