{"id":1450,"date":"2022-11-25T01:34:03","date_gmt":"2022-11-25T01:34:03","guid":{"rendered":"https:\/\/law-oh.com\/?p=1450"},"modified":"2022-09-28T14:47:30","modified_gmt":"2022-09-28T14:47:30","slug":"is-it-necessary-to-disinherit-your-special-needs-child-for-benefit-protection","status":"publish","type":"post","link":"https:\/\/law-oh.com\/is-it-necessary-to-disinherit-your-special-needs-child-for-benefit-protection\/","title":{"rendered":"Is It Necessary to Disinherit Your Special Needs Child for Benefit Protection?"},"content":{"rendered":"

It is a challenge and opportunity for families with special needs children to protect the future of their children. Providing appropriate medical, educational, recreational, and employment opportunities for your special needs child can result in a lifetime of pursuing public and private programs and services. Too often, the parents or persons responsible for financial and medical management of the special needs child receive misguided advice to disinherit them.<\/p>\n

Who Qualifies as Special Needs?<\/h1>\n

The term \u201cspecial needs\u201d refers to the clinical and functional development of individuals requiring assistance for medical, psychological, or mental disabilities. For government benefits programs, special needs are a part of the larger category of disability. Special needs diagnoses are considered disabilities, but not all disabilities are special needs. Maintaining your child\u2019s qualification for government disability benefits can be done through estate planning strategies. You do not necessarily need to disinherit your special needs child to preserve them.<\/p>\n

How Does Inheritance Affect Government Benefits?<\/h1>\n

Directing assets to the child can result in their inheritable assets and income levels exceeding allowable levels, making them ineligible for public assistance. This problem can make parents decide not to provide the same level of inheritance as they would for other children. It is a painful decision to make. However, other methods exist to provide inheritance and protect government benefits with careful planning.<\/p>\n

Estate Planning Solutions<\/h1>\n

The proper creation of a special needs or supplemental needs trust can help the child without jeopardizing eligibility requirements for government disability benefits. Public benefits have specific spending designations that cover shelter, food, clothing, and transportation. The monies from a special needs trust are designed to improve the child\u2019s overall quality of life but are spendable only in certain categories.<\/p>\n

The trust money can\u2019t be used for housing, food expenditures, or other financial needs that government benefits meet. Instead, it is used to pay caretakers, out-of-pocket medical expenses, some transportation, educational expenses, recreation, vacations, and more. A disability planning attorney can design your special needs trust to comply with the specific rules of the beneficiary\u2019s public benefits program.<\/p>\n

How Does a Trust Work?<\/h1>\n

Determining how to fund a special needs trust depends on your financial situation. Life insurance policies are a popular choice, as are income-producing assets that increase the trust\u2019s future bottom line. How much to fund the trust also depends on your financial situation. A broad list of your special needs child\u2019s expenses to consider include:<\/p>\n