Addressing special needs in estate planning may be challenging, however, it is worthwhile. Failing to address the needs of a mentally challenged or disabled person can have devastating consequences. Sometimes, a disabled person is unable to receive the inheritance he or she deserves from an estate plan, simply because a person failed to create a legally binding will or trust. To make sure special needs of individuals are met, one should consult with a lawyer to create the best estate plan possible.
Information provided for reference only, contact a New York Probate Attorney for more details.
Many people assume disinheriting a person with disabled needs is the best way to actually ensure their needs are met. This is one of the most unfortunate ways to go about the estate planning process for people with special needs. Disinheriting a disabled person is an outdated method and should not be used. Some people create wills this way, because they assume a disabled person will not be able to receive government benefits if they receive an inheritance. Experienced attorneys know how to draft wills so that disabled people can receive government benefits and an inheritance.
One of the other important parts of creating a will for special needs people is choosing the trustee. The trustee should be an objective third party in situations like this. While one may want family to serve as the trustee, sometimes this may not be the smartest choice. Families may choose to deprive disabled people of their benefits, while an objective third party will see to it that a disabled person receives his or her benefits.
There are other assets a person should not forget to allocate within a special needs trust. Many families forget to designate someone to receive the benefits of a life insurance policy. Even if a special needs person is unable to be the recipient, a family may wish to find another recipient for the life insurance policy.
In addition to hiring an attorney to devise a plan for a special needs person, one should also hire other individuals to see these needs are carried out. One can never have too many people working for the benefit of a special needs person. A care manager can serve as an effective liaison between a disabled person and an attorney. A life insurance professional with experience in giving benefits to special needs individuals may also prove to be incredibly helpful in this scenario. A government benefits specialist will also be able to advise on how to put together a will, such that a special needs person can still receive benefits from the government. An accountant familiar with deductions for families with disabled people will also be able to save a lot of money for the family who wants to be frugal.
