One of the greatest worries for parents with children that have special needs is what will happen to the child when they can no longer care for them. This concern can be eased a bit when they realize that finances are going to be available over the long-term so that the child can get the care they need. This can be done by utilizing a special needs trust. Sadly though, many well-meaning parents take other actions that unintentionally cause problems for their child. Read on so that you can avoid these 5 common money myths.
Some parents of special needs children believe they need to disinherit their children so they can receive government benefits such as SSI and Medicaid. These programs only provide basic needs such as food, health insurance, and housing. If your child needs additional services they may not be provided.
A better option for parents of special needs children is to set up a Special Needs Trust. This kind of trust allows your child with disabilities to benefit from your estate without giving up access to government programs, like SSI and Medicaid. Special Needs Trusts are complicated, and it is best not to try to set one up by yourself. It is strongly advised to consult an estate planning lawyer here in Missouri for help.
No one knows when they will die or become incapacitated. Therefore, it is essential to create an estate plan as soon as possible. If not, your estate will have to go through a messy court-ordered probate process. The probate process in Jackson County is long and expensive, and the courts will be making decisions for your child that are better made by you.
Myth 4: I can just copy what my friend, another special needs parent, did for their child.
It is important to create a trust that is especially suited for your child’s disabilities. For example, if your child is able to work, you will want to make sure that you have the finances available to cover transportation, out-of-pocket expenses, etc. Your child may also love music, so you’ll want to make sure that money is available for that hobby. A Special Needs Trust can provide quality of life expenses, so you should tailor it so that your child can still do the things they enjoy.
Myth 5: I don’t need to worry about any money left over after my child passes away. It will go to my other beneficiaries.
Sometimes, if there is money left over after the person with disabilities passes away, it must go to the government. The “payback” provision is meant to reimburse the government for services they provided to your child. In some cases, though, it is possible to avoid this situation and make sure that any money left over does, in fact, go to your surviving family members.
If you previously believed one of these five myths, please call our office at (816) 228-4383, and schedule a free consultation right away. The sooner you get started, the sooner you’ll experience the peace of mind knowing your child will be taken care of for the rest of their life.