| We all need an estate plan but most of us put it off | | | | benefits only pay out if an individual has less than |
| until we get older. An estate plan is one of the three | | | | $2,000 (not including a home, vehicle and basic |
| foundation steps that are needed before you invest. If | | | | personal items) in assets. |
| you don't have a basic estate plan, then an investment | | | | - There must be an independent trustee who makes |
| plan can go sour quickly under dire circumstances. 41 | | | | distributions, and communicates with the disabled |
| million Americans or almost 15% of the population age | | | | person and works closely with government agencies. |
| 5 and older have some type of disability and 2.8 million | | | | They handle the money management and file all the |
| kids (ages 5-15) have disabilities. In fact, I hardly know | | | | necessary paperwork for the trust. |
| any family that hasn't been affected by some child's | | | | - Third party trusts can be funded by parents and act |
| learning or mental disability. This means that many | | | | the same way. Parents need to be careful not to pay |
| children will outlive the parents who support them. This | | | | distributions directly to the special needs person but to |
| is driving many families to look at having an estate plan | | | | a trustee of the trust- normally a financial services |
| while they are young. | | | | company, lawyer, accountant, or financial advisor. |
| A basic estate plan consists of a will, health care | | | | Other relatives, too, should be aware that they should |
| directive, power of attorney for financial and health | | | | leave gifts or an inheritance to the special needs trust |
| care, and sometimes a living trust. It may also include a | | | | not the person directly. |
| special needs or supplemental needs trust. Here are | | | | - Each state has their own rules governing special |
| some of the characteristics of a special needs trust: | | | | needs trust so make sure your financial professional is |
| - A special needs trust provides funds for expenses | | | | aware of the specifics of your state. The Academy |
| that enhance a disabled person's quality of life while | | | | of Special Needs Planners is an excellent resource as |
| not cutting off access to government benefits, such as | | | | well as the Special Needs Alliance. |
| Medicaid or Supplemental Security Income | | | | If you have a family member that is disabled, make |
| (SSI).Special-needs individuals under age 65 are | | | | sure your estate plan contains some form of special |
| allowed to have trusts funded with their own money | | | | needs trust. If not, a loved one could be losing out on |
| (assets from an inheritance or legal settlement) and still | | | | benefits that could continue for them past your lifetime. |
| have access to government benefits. Government | | | | |