1. Future and Estate Planning for a family with special needs
AFTER YOU’VE GONE
Future and Estate Planning for a family with special needs

2. “I’m all set – everything is in place!”
I have a will.
Everything will go to my child who has
special needs.

3. While it sounds like a wonderful idea, it may cause problems.
Let’s look first at public benefits.

4. SOME PUBLIC BENEFITS AN INDIVIDUAL WITH A DISABILITY
MIGHT
RECEIVE

5. SSDI Social Security Disability Insurance
Determined by the work history and disability of the individual or the parent
Child becomes eligible to receive benefits at age 18

6. Some public benefits are not related to income
Some public benefits are not related to income. However, individuals must meet eligibility requirements.
Developmental Disability Administration (DDA) provides long-term supports such as day programs, respite care, and residential supports.
Division of Rehabilitation Services (DORS)
can provide vocational training, short term job supports and habilitation.

7. Some public benefits have income and assets limits!
Supplemental Security Income (SSI) provides monthly income intended to cover food, clothing and shelter only.
Medical Assistance (MA) covers medical expenses of people with disabilities who have very low income and assets.
If an individual receives SSI, medical assistance is automatically given.
It is possible to receive MA without SSI.

8. FOUR PIECES FOR PEACE OF MIND With these four documents, you can feel comfortable about the future.
Will
Letter of Intent
Trust
Advance Directive

9. MYTHS ABOUT WILLS This is my only child. I don’t really need a will.
If your child inherits all assets, these may exceed the limits imposed by public benefits.
All my money will go to a sibling who will take care of the child with a disability.
The sibling may encounter financial difficulties due to divorce, illness, or loss of income and will use the money meant for the child with a disability.
A will and a trust are only for rich people and too expensive.
The cost of the will is minimal compared to the cost of lost public benefits.
A trust will prevent the loss of public benefits.
My will says exactly what to do with my assets.
Be careful of the accumulation of assets for a person with special needs.

10. TWO TYPES OF SPECIAL NEEDS TRUSTS
Self Settled Trust
Funded by the individual with a disability
Third Party Trust
Funded by others
(third parties)

11. SELF SETTLED TRUST Drawbacks to use Requires trustee
Used when funds come from the individual with special needs. For example:
unexpected receipt of assets in the individual’s name
Court settlements in the individual’s name
What happens when the beneficiary of the trust dies?
Medical Assistance will compute the cost of medical care paid by MA throughout the individual’s life. That amount of money is deducted from the trust before its assets can be distributed to others
Drawbacks to use
Legal fees to set up
Loss of assets at end of life

12. THIRD PARTY TRUST Requires a trustee
Funded by person(s) other than the beneficiary
Does not count as personal assets, so individual retains all benefits
Can be set up at any time prior to the receipt of assets
Does not require initial investment
Assets remain for heirs after individual dies

13. EXAMPLES OF WHAT A TRUST CAN PAY FOR:
Medical and supportive needs
Vocational and other training
Home maintenance bills
Personal care bills
Transportation
Pet care

14. Letter of Intent Informal or Formal method of communicating in writing
Details what parent envisions for child’s life
Details what child’s life is currently
Important details about needs and desires
May be completed over time
Not a legal document

15. ADVANCE DIRECTIVE Important for both parents and adult child to have
You can only complete your own
Detailed information about health care
Assures that wishes will be followed
Names a person to make decisions if individual is incapacitated or unable
Copies should be given to doctors, hospital, and all who help care for the individual
What happens if there is no advance directive?
Others are asked to make decisions in this order:
Spouse, child, parent, other close relative, close friend or neighbor, hospital ethics committee, court

16. WHO CAN HELP? Attorney Financial Planner Other family members
Familiar with Supplemental Special Needs Trusts
Familiar with unique needs of people with disabilities
Knowledgeable about public benefits
Experience working with individuals with disabilities
Financial Planner
Help you determine your financial goals and means to get them
Comfortable working with your attorney
Other family members
Trusted individuals

17. Will Letter of Intent Trust Advance Directive
FOUR PIECES FOR PEACE OF MIND With these four documents, the puzzle pieces come into place, and you can feel comfortable about the future.
Will
Letter of Intent
Trust
Advance Directive