Bequeathing Money to Children With Special Needs

Attorney Marty Fogarty | 888-981-5604 | Schedule Your Consult Today

Estate plans can be stressful to arrange, even more so if you have a child or grandchild with special needs whose situation needs to be specifically considered and planned for. So, what’s the best method for bequeathing money to children with special needs? How should you include your child or grandchild with special needs in your estate plan?

Marty Fogarty is a probate attorney and founder of The Heartland Law Firm, based in Glenview, Illinois. In this video, he explains how you can make sure your estate plan fully covers a child with special needs. He recommends a special needs trust or a supplemental needs trust.

To learn more, contact the attorney directly by calling 888-981-5604 or by submitting a contact form on this page.

A trust is a financial arrangement that allows for a specific amount of money to be held aside for the specific use of a beneficiary.

Implementing trusts into your estate planning is a good way to manage how and when the money you leave a beneficiary is allowed to be used, even after you’re gone. In some cases, they can also reduce estate taxes, which is a pleasant bonus to the other benefits it offers.

Consider adding a supplemental/special needs trust to your estate plans.

So, what is a supplemental or special needs trust? This is a way you can leave money to care for a special needs dependent as long as that person lives, without having to leave money in the care of another person on the special needs individual’s behalf. This is wise, as it ensures the money you leave your dependent is reserved solely for their own care and use.

If money is left directly to a special needs dependent, they may lose their eligibility for government benefits.

It’s important to note that if you do choose to leave money directly to your dependent, they could very well lose their eligibility for government benefits because of it. The type of trust you choose to arrange may depend on the amount you intend to put into it. Supplemental or special needs trusts can be vital to making sure your wealth goes where it should after you’re gone. However, they can be complicated to arrange.

Hire a specialist to create a supplemental/special needs trust for your child or grandchild.

A specialist will know exactly what questions you need to answer to make the trust work exactly how you want it to you for your dependent. An experienced estate planning lawyer can predict the benefits and possible pitfalls of your current estate plan and make recommendations based on it to make sure your family is provided for in the best way you see fit. In more complicated estate planning matters, like setting up a supplemental/special needs trust for your child or grandchild, having an estate planning lawyer by your side can be invaluable to the overall efficiency of the estate planning process and effectiveness of the estate you leave behind to care for your family.

To learn more, contact Marty Fogarty directly by calling 888-981-5604 or by submitting a contact form on this page.

Video Transcript:

Leslie Rhode:
I’m Leslie Rhode with this Quick Question from AskTheLawyers.com™. Can I factor in a child who will need extra care when planning my estate? Attorney Marty Fogarty of Illinois gave us this answer.

Marty Fogarty:
So, we want to have a trust called a supplemental needs trust, and you want to have a specialist create that for you, for your child. And you might create that when they’re a child. So, for example, if my grandfather or my dad passed away and he wanted to give money to my son, who had a special need, he’s able to give it right to my son’s trust as opposed to my son outright. And that way, the assets in the trust aren’t counted against my son. That would kick him off the benefit program. And you really want to explore it's called a special needs trust, or a supplemental needs trust might be a great fit for you to protect their well-being over time.

Disclaimer: This video is for informational purposes only. In some states, this video may be deemed Attorney Advertising. The choice of lawyer is an important decision that should not be based solely on advertisements.