People generally want to make sure that their children are taken care of after they pass away and generally want them to receive their property. To ensure this happens people need to have a good estate plan, which may need to consist of more than just a Will.
Some parents have children who have special needs. The parents may need to provide for these children even when they are adults. Parents in this situation generally want to ensure that these children will continue to be taken care of after their passing. It would be natural to want to leave them a large inheritance so they can continue to meet their needs. This may seem like a good plan, but it could actually be detrimental to the child.
How trusts can benefit children with special needs
Many special needs children will qualify for certain government programs and assistance. As adults eligibility for these programs and assistance is based on the children’s income and assets. There are limits on how much they can possess in order to receive the benefits. If they receive a large inheritance, that could actually cause them to be ineligible to receive these benefits.
Parents in this situation may want to consider having a special needs trust instead. People can put the child’s inheritance or other money into a special needs trust, which the child would not have any control over. Instead a trustee would manage the trust for the child and make disbursements to ensure their needs are still met. Because the assets are in the trust and not controlled by the child, those assets and income will not be counted when determining their eligibility for benefits and they should be able to keep receiving those valuable benefits.
Parents of special needs children in Colorado need to make different plans than parents of children without special needs. This includes differences in their estate plans. These parents may need a special needs trust for their children instead of just a will or a revocable trust. Experienced attorneys understand the need for a good estate plan which is tailored to the individual needs of each family and may be able to guide one through the process.