Planning your estate special needs for your family, friends, and beneficiaries. It’s crucial to remember that you won’t be around to see the results of your estate planning. After your passing, the executor of your will, the trustee of your trust, or the estate’s administrator will manage your estate plan.
How well you plan can make this either a rewarding or challenging experience for your loved ones. If your planning lacks detail, your family might struggle with both grief and financial matters. Ideally, your planning should allow them to focus on remembering you, not on estate logistics.
If you have a family member with special needs, thoughtful planning becomes even more critical. Special needs individuals require careful consideration in estate planning. Your efforts can significantly improve their quality of life.
Today’s blog post from the Law Office of Bryan Fagan will discuss five essential measures for estate planning in special needs cases. This post is tailored for those who have a special needs individual in their lives. We’ll guide you through planning processes that can make a meaningful difference for your special needs friend or family member.
Megone Trewick, our lead estate planning attorney, is eager to assist with your estate planning needs. Our team is available six days a week in person, by phone, or via video for consultations at no charge. Whether you have specific questions from this post or general estate planning inquiries, we’re here to help.
#1: Think about the specific needs of your special needs family member
Today, our blog post focuses on individuals with special needs. When planning your estate, general assumptions about special needs don’t suffice. Instead, consider the unique circumstances, needs, and abilities of your special needs family member. Understanding their current life and future needs is crucial for effective estate planning.
If your special needs family member has a physical disability, your plan might include ongoing medical care, advanced assistive technologies, home modifications for accessibility, and therapeutic support to help manage their condition. It’s possible that with progress, they might not need as much assistance in the future. Consider their current state and potential future situation as you plan.
Planning for a mental health impairment presents unique challenges, as these conditions can be chronic or fluctuate over time. Support groups, therapy, and medication can manage these conditions effectively. It’s tough to predict the progression of these impairments, but consulting with medical professionals can guide your planning. For adults, researching their condition and discussing it with our estate planning lawyers can help tailor your plan.
Always base your planning on the specific needs of your family. This process usually costs only your time, not money. Ultimately, your efforts will be appreciated by your loved ones for the thought and diligence you put into planning for their well-being.
#2: What benefits are your loved one receiving right now?
It is common for people with special needs to rely upon government benefits to pay for medication, medical equipment, assisted living, and/or nursing home care. The way that this type of benefit works is that the provider of the benefits will need to periodically review the income and assets of the special needs individual to verify eligibility for that program. In many cases the ability of a person to receive a benefit from the government requires him or her to have less than $2,000 in assets to their name. This is below the definition of “poverty” that the federal government has. In other words, your loved one may need to be destitute to qualify for the benefit.
Why does this make a difference to us in today’s blog post? Many people in your position, as someone who wants to help a special needs individual provide for their needs, believe that they are unable to do so because of the income restrictions and asset caps that these programs have. This is not accurate, however. You can have your special needs loved one be a part of your estate planning and not have your generosity conflict with their benefits. You need to be careful about how you structure the estate planning and to have a plan on how you are going to accomplish your goals.
A special needs trust is a tried-and-true method of estate planning if you have a person in your life with a mental or physical disability. The special needs trust allows you to leave money or property to the special needs individual in a way that the government cannot use that generosity to count against the cap or limits placed on assets or income. Working with Megone Trewick and our team of esteemed estate planning attorneys allows you to take your generosity, develop a plan, and put that plan into motion.
#3: Guardianship
Guardianship enables an adult to care for someone unable to make sound decisions due to impairments. If your spouse has special needs, you might already be their guardian. In Texas, a community property state, certain assets pass to your spouse automatically upon your death.
However, complications arise with additional responsibilities. For instance, imagine you own a fully paid-off home. If you were to unexpectedly pass away while setting up Christmas lights, the home would automatically transfer to your spouse. But, should you rely solely on this automatic transfer for your special needs spouse? Definitely not. It’s crucial to discuss guardianship with your family to ensure ongoing expenses like property taxes and maintenance are managed after your passing.
Guardianship also allows someone to oversee your spouse’s personal care, not just their finances. For example, your daughter could manage day-to-day activities like medical appointments and making decisions for her. This might be essential depending on your spouse’s needs.
Additionally, you could establish a special needs trust for your spouse’s financial future. You might appoint your daughter as the trustee, or choose someone else to avoid overburdening her. It’s wise to distribute responsibilities to safeguard against unforeseen issues or poor decisions.
#4: Survivorship
We’ve touched on this topic earlier, but it deserves a deeper look. Everyone hopes to live to a ripe old age, but life offers no guarantees. The harsh truth is, none of us are immortal.
Considering this, we must carefully plan for end-of-life situations. If you have a loved one with special needs, planning becomes even more critical. You’ll want a smooth transition and proper distribution of your assets. Wills and trusts are two straightforward estate planning tools that can help you achieve these goals.
A will lets you specify who inherits your assets after you pass. If married, your spouse typically receives your community property. However, you can designate different beneficiaries for your separate property. Without a will, your children would inherit your separate property by default.
Trusts enable you to leave property to specified beneficiaries without the need for probate. Once created, the trust becomes the legal owner of the property. A trustee manages the trust, ensuring property is distributed according to your wishes. Trusts are particularly beneficial for planning the future of someone with special needs.
Trusts are popular because they bypass the probate process. Probate involves settling the assets, property, and debts of the deceased through court. It can be costly and time-consuming, so avoiding probate is generally advantageous. Creating a trust is an effective way to achieve this.
#5: Distribution of your assets
Ultimately, your estate plan should ensure that your loved one with special needs can inherit property in a way that secures their future. Managing estate planning for someone who may depend entirely on these assets is challenging.
It’s crucial to be intentional with your estate plan. This means focusing on your goals, understanding the needs of your loved one with special needs, and devising a cohesive plan. Simply having good intentions isn’t enough; you need a concrete, actionable plan to support your family, including your special needs loved one.
No matter which estate plan you choose, it’s important to have peace of mind. Be prepared to adapt your plan as circumstances and goals evolve. Flexibility is key in effective estate planning.
Given the complexities of having a special needs loved one, professional legal guidance is vital. The attorneys at the Law Office of Bryan Fagan are dedicated to helping you. We prioritize your goals and work diligently within the law to help you achieve them. Thank you for joining us today, and remember, we’re here to assist you, just as we have helped countless others in Texas.
Questions about the material contained in today’s blog post? Contact the Law Office of Bryan Fagan
If you have any questions about the material contained in today’s blog post, please do not hesitate to contact the Law Office of Bryan Fagan. Our licensed estate planning attorneys offer free-of-charge consultations six days a week in person, over the phone, and via video. These consultations are a great way for you to learn more about the world of Texas estate planning law as well as how your family may be impacted by the filing of a probate case.
Other Related Articles:
- Five Key Measures for Estate Planning in Special Needs Cases
- Special Needs Children and Divorce in Texas
- Child Support For Special Needs Children
- Child Support for your special needs child
- Custody challenges for families of special needs children in Texas
- Estate Planning Strategies for Texans with Special Needs Children
- Children with Special Needs and Custody Arrangements in Texas: A Comprehensive Guide
- Testamentary Special Needs Trusts
- Fireside Chats Live Webinar- Special Needs Trust
- Child Protective Services Investigations in Texas
Evan Hochschild was raised in Houston, TX and graduated from Cypress Creek High School. He went on to graduate from Southwestern University in Georgetown, TX with an undergraduate degree in Political Science. While in college, Evan was a four-year letterman on the Cross Country team.
Following in the footsteps of his grandfather and uncle before him, Evan attended law school after he completed in his undergraduate studies. He graduated from St. Mary’s University School of Law and has practiced in a variety of areas in the law- including family law.
Mr. Hochschild is guided by principles which place the interests of clients first. Additionally, Evan seeks to provide information and support for his clients with the heart of a teacher.
Evan and his wife have four small children together. He enjoys afternoons out and about with his family, teaching Sunday school at his church and exercising. A veteran attorney of fourteen years, Mr. Hochschild excels in communicating complex ideas in family law simply and directly.
