For parents of special needs children, developing a special needs plan is one of the best things you can do for you and your child. Special needs planning in Rochester NY, like estate planning, is not a single set of tools that applies to everyone in all situations. Instead, developing a special needs plan requires you to evaluate your options in light of your current circumstances and your goals. Every special needs plan needs to be crafted to fit your circumstances.
Though your estate planning will guide you throughout this process, here are several common mistakes you’ll definitely want to avoid as you develop a special needs plan in New York.
Special Needs Planning in Rochester NY
Mistake 1. Ignoring special needs plan benefits or inheritances.
One of the most important parts of a special needs plan involves structuring assets so that your child with disabilities can remain eligible to receive government benefits. At the same time, the special needs plan will provide an inheritance or financial support that the child can use as he or she gets older.
The key idea here is to not solely rely on one or the other. A special needs plan will allow you to leave your child an inheritance, while still ensuring that the child can receive Medicaid, SSI, or other appropriate government benefits or services.
Mistake 2. Hasty trustee selection.
Part of the process of creating a special needs trust involves choosing the appropriate trustee. Your choice of trustee will significantly affect how well the special needs trust operates. If you choose the wrong trustee, your special-needs child may experience unnecessary difficulties.
The choice of trustee is never simple, but there are common options you will have to consider. Many parents of children with disabilities will often choose another adult child to serve as trustee. However, if that child is not well-suited to manage property, or is not located physically close to the child with disabilities, you may want to consider other options. In some situations a professional trustee will be better suited to manage the trust responsibilities than a family member.
Mistake 3. Not acting, or acting too late.
The worst mistake any parent of a child with disabilities can make is to not have the appropriate plan in place as soon as possible. Even if you are financially stable and have enough resources to provide for your child’s care, there is always the possibility that something might happen to you. Even if you are young and healthy, your child will need special needs planning that will address what will happen should you become incapacitated. Procrastinating, ignoring the issue, or being afraid to ask yourself the difficult questions can not only hurt you, but your child as well.
Latest posts by Michael Robinson, Estate Planning Attorney (see all)
- Pet Planning Questions Answered - January 30, 2020
- Reasons an Estate Plan Could Be Challenged: Part 4 – Lack of Testamentary Capacity - January 29, 2020
- Life Insurance for Succession Planning and Inheritance Balancing - January 28, 2020