Planning for special people
PLANNING FOR SPECIAL PEOPLE
By Libby Banks, the Law Office of Libby Banks, PLLC
One of many things we discuss with clients who are planning with us is whether there are any special needs concerns with a beneficiary. When we say special needs, we are referring to someone receiving needs-based government benefits and services. Some examples might be a child or adult with downs syndrome, a person who has never been able to work because of a medical condition, developmental impairment, brain injury or other impediment.
The special needs beneficiary qualifies for the government benefits or services because their assets and income are below specified levels. Those benefits can be disrupted or eliminated by a direct inheritance. Most often, we don’t want that. For instance, an adult special needs individual with a living situation or a work position that is provided as a government benefit may feel their whole world has been turned upside down if they are no longer able to stay in that situation or position. It can be devastating and disorienting, and they may well have no understanding of why this has happened.
What do we do in our planning to be sure we don’t cause that disruption? We prepare a special or supplemental needs trust as part of the planning process. The special needs trust contains the provisions needed so that any inheritance left to our special needs person are not counted as that person’s own assets, and thus don’t affect their government benefits.
When setting up a special needs trust, it is vital to select a trustee to help the beneficiary manage the trust assets in accordance with the established guidelines set by the government entities providing the benefits. Choosing a trustee who is familiar with the regulations – or is willing to seek guidance from an experienced professional – is the best way to ensure that the bequest is honored and the beneficiary is protected. We can assist you with this selection process.
If there is a special needs beneficiary in your plan, or one who would be a direct beneficiary of your estate if their parent passes, you should consider special needs planning. We do this planning as part of your overall plan usually, but we are happy to discuss doing a special needs trust as an adjunct to a plan you already have in place.
Whether or not you have a special needs person to plan for, your estate plan should be customized to you. Our office takes pride in doing just that. If you are ready to get an estate plan in place, update your existing plan, or do a special needs trust, we would love to help. Call our office at 602-375-6752 to schedule a consultation with one of our attorneys.