Ensure Your Special Needs Loved One Is Taken Care Of With This Estate Planning Checklist
Are you a parent or conservator of a special needs individual?
If so, it’s important to make sure that your loved one is protected in the event of any possible change in your life.
Careful estate planning is essential for providing for their well-being as well as preserving their quality of life.
Although estate planning can seem complicated and challenging when it comes to those with special needs - don't be discouraged!
By equipping yourself with the right guidance and resources, you can successfully draft an estate plan for your loved one.
A Checklist For Special Needs Estate Planning
It’s important to understand all of the legal, financial and other considerations that come into play when planning for a person with special needs.
We’ve put together this checklist of key steps you should take when creating a special needs estate plan.
1. Letter of Intent - To create a strong foundation of care, compose a letter of intent detailing your wishes and expectations regarding their medical history and personal needs. Share this important document with trusted loved ones; don't forget to review it periodically as circumstances change over time.
2. Choose an Attorney Experienced in Special Needs Planning - Protecting the futures of those with special needs requires careful consideration and planning. It's important to find an attorney with expertise in special needs planning. This will ensure that all potential issues are addressed and your loved one’s future is safeguarded. The lawyer should be well-versed in government programs, trusts, wills and other aspects of estate planning applicable for those with disabilities or chronic health conditions.
3. Consider Limited Conservatorship - Conservatorship can be an important and beneficial legal arrangement for those who are unable to manage their own affairs. When considering guardianship, it’s essential to weigh the necessity of such a role as well as how much responsibility you would like to assume on behalf of your ward's finances, health care and other obligations.
4. Establish Trusts - Trusts can be a beneficial component of special needs estate plans, offering financial flexibility and potential tax savings while safeguarding assets during benefit eligibility determinations. The three most commonly utilized trust types for individuals with particular requirements include supplemental needs trusts, pooled income trusts and third-party trusts - each possessing its own unique advantages to cater best to the specific situation at hand.
5. Update beneficiary designations - Make sure all life insurance policies, retirement accounts, bank accounts, investments, are up-to-date with beneficiary designations so that funds are distributed as intended in the event of your death or disability.
While no one ever wants to think about what would happen if they passed away unexpectedly while their child or loved one still requires support due to a disability or chronic illness, taking proactive steps today can help ensure that your loved one is taken care of financially.
If you need help getting started on creating an effective special needs estate plan tailored specifically for your situation, reach out today. My team is here to help guide you along this journey!
DISCLAIMER: The content contained herein is for general informational purposes only. These materials do not constitute legal or other professional advice. We do not accept any responsibility for any loss that may arise from reliance on this information. No reader should act or refrain from acting based on information contained in this article without seeking advice of counsel.