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Estate planning for a family member with special needs

On Behalf of | May 11, 2023 | Estate Planning |

Estate planning can be a challenging task for any family. However, the process becomes more complex when a family member has special needs. 

In California, families must consider the unique needs of their loved ones with special needs when planning for their estates. 

What is estate planning for a family member with special needs?

Estate planning for a family member with special needs involves planning for the care and financial security of a person with a disability or medical condition. This process involves creating legal documents that establish how assets will be managed, who will make important decisions and how care will be provided.

The goal of estate planning for a family member with special needs is to ensure they receive the care and financial support they need throughout their lifetime, even after their parents or guardians pass away. 

Special needs trusts

One of the most important tools for estate planning for a family member with special needs is a special needs trust. A special needs trust is a legal document that allows assets to be set aside to benefit a person with a disability or medical condition without affecting their eligibility for government benefits.

Special needs trusts are essential because many government benefits, such as Medi-Cal and SSI, have strict income and asset limits. If an individual with special needs inherits assets directly, it can result in the loss of government benefits. 

Other estate planning tools

In addition to special needs trusts, families may also consider other estate planning tools to provide their loved ones with special needs. These may include:

  • Durable power of attorney: This document allows someone to make legal and financial decisions on behalf of a person with special needs if they become incapacitated.
  • Advance healthcare directive: This document allows someone to make medical decisions on behalf of a person with special needs if they cannot make them.
  • Letter of intent: This document provides important information about a person with special needs, including their preferences, routines and other important information. 

Estate planning for a family member with special needs is an important and complex process. Families must consider the unique needs of their loved ones and create a plan that provides for their care and financial security. 

 

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