It's a daunting task to put together an estate plan in Missouri for yourself and maybe even a spouse. When you add children, the complexity increases. If a child has special needs, it becomes imperative to have an estate plan in place—because you may be their only source of support socially, emotionally, and financially.
At Tucker Legal Services d/b/a Your Estate Ally, Sheri Tucker is your special needs planning lawyer in the Greater St. Louis Area. She understands how delicate special needs planning can be. Parents worry, and rightfully so. We have solutions, though. Below is an overview of special needs planning. Contact us online or at 314-332-0011 for a Complimentary 15-minute phone call. to learn more about it and how she provides legal services can help you and your child with special needs.
What is a Special Needs Trust in Missouri?
It's simple, an estate plan with a Special Needs Trusts helps your child with a quality of life especially as he or she ages into adulthood. You can help make sure your child has all the necessities they need. Of course, it all depends on how you put your estate plan together to ensure they have what they need and more. If planned correctly, you can help provide:
- Money management that benefits the child for their lifetime
- Protection for public benefits
- Funds set aside for the future in case public funding is disrupted or restricted
Your tailored-made estate plan may include identifying care providers, appointing a guardian, creating a trust and designating a trusted trustee, and finding housing. As such, an estate plan that protects a person with special needs can include documents to create or address:
- Providing Quality
- Setting Aside Trust funds
- Care providers
- Housing
- Life items not covered by Government Benefits
For many, the most important elements of an estate plan will be the creation of a trust, and appointing a trustee.
Testamentary or Special Needs Trust?
Children with special needs may not be able to earn a living on their own. Instead, they often rely on their parents for financial security.
Parents can continue to provide that financial security by establishing a testamentary trust or a special needs trust. Both set aside assets from the parents' estate to fund a trust that would be professionally managed by a trustee of the parents' choice. The principal in that trust would create interest payments that can be used to cover the child's ongoing needs and care. Also, in some jurisdictions and if drafted properly, the child may still qualify for public assistance––if desired and necessary. However, there is a major difference between the two types.
When selecting the trustee for the trust, you want to consider seriously who you want the trustee to be. If the trustee, like a family member, views the trust's assets as family assets, they may spend the money themselves. In place of a family member as the trustee, you could also consider:
- An attorney
- A trust company
- A financial institution
- A nonprofit organization with experience
- A nonprofit organization specific to special needs
You can also opt to have co-trustees where one trustee is a family member and the other is not. There are, of course, pros and cons to all these options, so speaking to a special needs lawyer works in your favor.
Avoid Mistakes for Children with Special Needs
When parents have the assets and want to leave them to their children, including a child with special needs, there are a few mistakes often made.
- Disinheritance. Some parents think they should disinherit their child so that the child will qualify for public assistance. Public assistance, however, cannot cover all the necessities the child needs even though it provides great benefits, like vocational rehabilitation, job coaching, shared housing, etc.
- Sibling's promise. Some parents think they can simply leave their estate to their other children with the latter promising to care for the child with special needs. Though this option seems promising, there are no assurances, and your child with special needs could suffer because of a failure to properly plan.
- Inheritance. Here, parents leave an inheritance to the child, but if it meets a certain threshold, it will negatively impact the child's eligibility for public benefits. If your child needs both to live comfortably, then more strategic planning is necessary.
- Taxes. Sometimes, parents fail to consider taxes. Taxes matter, especially when considering if the special needs trust should be revocable or irrevocable because the implications will vary accordingly.
In the end, it is always best to speak to our estate planning attorney in Missouri to make sure you set up the estate in your child's best interest.
Contact Your Estate Ally
You want what's best for your child with special needs, and at Tucker Legal Services d/b/a Your Estate Ally , Sheri Tucker understands what a special needs trust means for your child. Sheri Tucker is an estate planning attorney in Missouri who will listen to your concerns for your child, review your assets, and provide the best legal options for you so that your goals for your family are met. Contact Sheri Tucker by filling out the online form or calling us directly at 314-332-0011 to schedule a Complimentary 15-minute phone call for information today.
