8 Costly Mistakes to Avoid When Planning for Your Special Needs Child

Proper estate planning is important for everyone, regardless or age or wealth, but for parents of a special needs child, smart planning is essential. Improper planning (or worse, no planning at all) could leave your child without the resources he or she so desperately needs, or even disqualify him/her from vital government benefits. This article addresses 8 common, and costly, planning mistakes that such parents must avoid if they want to protect their special needs child.

COSTLY MISTAKE #1: Disinheriting the child. Many disabled people rely on SSI, Medicaid or other government benefits to provide food and shelter. You may have been advised to disinherit your disabled child (the child who needs your help most!) to protect that child's public benefits. But these benefits rarely provide more than subsistence, and this "solution" does not allow you to help your child after you are incapacitated or gone. When your child requires -- or is likely to require -- governmental assistance to meet their basic needs, you should consider establishing a Special Needs Trust.

COSTLY MISTAKE #2: Ignoring the special needs when creating a trust for the child. A Trust that is not designed with your child's special needs in mind will probably render your child ineligible for essential benefits. The Special Needs Trust is designed to promote the disabled person's comfort and happiness without sacrificing eligibility. Special needs can include medical and dental expenses not covered by Medicaid, cutting edge or non-traditional treatments or therapies, necessary or desirable equipment (such as specially equipped vans), training and education, insurance, transportation, and essential dietary needs. If the trust is sufficiently funded, the disabled person can also receive computers, books, games, vacations, movies, payments for a companion, and other self-esteem and quality-of-life enhancing expenses -- the sorts of things you now provide.

COSTLY MISTAKE #3: Creating a "generic" Special Needs Trust that doesn't fit. Even some Special Needs Trusts are unnecessarily inflexible and generic. In most cases, an attorney with some knowledge of the area can prevent a trust from invalidating the child's public benefits; however, many trusts are not customized to the child's specific needs. As a result, the child fails to receive the benefits that the parent provided when they were alive. Another mistake is when lawyers put a "pay-back" provision into the trust rather than allowing the remainder of the trust to go to others upon the death of the special needs child. These pay-back provisions are necessary in certain types of Special Needs Trusts -- and not necessary in others. An attorney who knows when they should be used can save your family hundreds of thousand of dollars, or more.

COSTLY MISTAKE #4: Procrastinating. Because none of us knows when we may die or become incapacitated, it is important to plan for your special needs child early, just as you would for other dependents, such as minor children. Unlike other beneficiaries, your special needs child may never be able to compensate for your failure to plan. A child without special needs can obtain more resources as he or she reaches adulthood and can work to meet essential needs. Your special needs child may not have that opportunity.

COSTLY MISTAKE #5: Failing to invite other people to contribute to the trust. A key benefit of creating the trust now is that your extended family and friends can make gifts to the trust or remember the trust as they plan their own estates. In addition to the gifts and inheritances from other people who love your child, you can leave your own assets to the trust in your will. You can also name the trust as a beneficiary of life insurance and retirement benefits.

COSTLY MISTAKE #6: Choosing the wrong trustee. During your life, you and your spouse can manage the trust. When you and your spouse are no longer able to serve as trustee, the person or persons you specify in the trust instructions will become the new trustee, such as a professional trustee or a team of advisors. Make sure that whomever you choose is financially savvy, well-organized, and ethical.

COSTLY MISTAKE #7: Relying on your other children to use their money for the benefit of your special needs child. This can be a temporary solution, such as during a brief incapacity, if your other children are financially secure and have money to spare. However, because of the potential problems, this solution will not protect your child after you and your spouse have died or when siblings have their own expenses and financial priorities. For example...

What if your child with the money divorces? His or her spouse may be entitled to half of the funds and will not likely care for your special needs child.
What if your child with the money dies or becomes incapacitated while your special needs child is still living? Will his or her heirs care for your special needs child as thoughtfully and completely as your child with the money did?
What if your child with the money loses a lawsuit and has to pay a large judgment or has other creditor problems? The court will certainly require your child to turn that money over to his or her creditors.

When you create a Special Needs Trust, you protect all of your children. The trust facilitates easier record-keeping and allows your other children to rely on the assistance of a professional trustee, if needed. Siblings of a special needs child often feel a great responsibility for that child, as they have all of their lives. When you provide clear instructions and a helpful framework, you lessen the burden on all of your children and build a loving, involved relationship that benefits your child with special needs.

COSTLY MISTAKE #8: Failing to protect the special needs child from predators. Thieves, con men and other criminals look to take advantage of those who are most vulnerable, like your special needs child. A child trapped in the system with precious little resources and without anyone to look after their affairs can easily fall prey to these predators. When you establish a Special Needs Trust and properly structure your estate plan to protect your special needs child, you ensure that your child will never be left alone, will always be provided for, and will always have a trustworthy person -- either a guardian or trustee, or both -- watching over them.

Questions or Comments? Please don't hesitate to call or email me. Visit our website for contact info.

Joseph P. Donlon, Esq., CFP is thefounder of Donlon & Associates, PC, a boutique law firm dedicated to providing high quality, focused legal counsel to clients of all ages and wealth levels in the following areas:

Wills & Trusts
Asset Protection Planning
Estate Tax Planning
Elder Law
Special Needs Trusts
Probate & Estate Administration

Donlon & Associates, PC serves clients throughout New York City, Long Island, Westchester, and Northern New Jersey. These areas include Nassau County, Suffolk County, Westchester County, Queens, Brooklyn, Manhattan, Staten Island, Hoboken, Jersey City, Hudson County, and Bergen County.

Please visit us at http://www.donlonlaw.com/

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You Should Consider Estate Planning

Why even think about estate planning? Getting your affairs in order for your estate can create future financial security for your family, preserve your hard-earned assets for future generations, help you organize your affairs before you become incapacitated and decrease anxiety for future of your loved ones, knowing they will be well taken care of. This article will discuss several benefits of estate planning.

Be empowered to be the one to decide the ones to receive your property upon your death and the conditions under which they receive it, rather than your property descending to your heirs according the Illinois statutory scheme at your death. Given the rise in divorced, remarried, single parent and other nontraditional family lifestyles in our society, this becomes especially important. While no one has control over when and how they will depart this world, people can exert control over how their property is distributed upon their deaths. A major consideration is that by naming persons to receive your assets upon your death, you can also potentially avoid family feuds over who gets what. So many of our clients believe that their descendants would never become involved in contested legal proceedings over their estate, but unfortunately, it happens often.

Estate planning allows you the opportunity to organize your estate in advance of disability that comes with accident, illness or advanced age. Many times we meet with family members who lament the fact that mom or dad didn't "take care of things" before they lost the ability to do so. Conditions which occur over time including forms of Alzheimers and dementia, slowly rob people of their abilities to manage their affairs, and mental deterioration may not be apparent in the early stages. By the time a person realizes or acknowledges that he or she is suffering from such a disease, it may already be too late for them to competently design an estate plan or appoint representatives to act on their behalf. Be sure to effectuate your estate plan while you are healthy enough to make decisions which are effective under the law so you can develop an estate plan and appoint agents with the assistance of your attorney. This process involves identifying your assets and deciding the natural objects of the disposition of your property after death. Through the course of this process, you have the opportunity to gather all important documents evidencing your assets and obligations and organize them for the benefit of your heirs and beneficiaries. Prior organization benefits your heirs when you are gone. Even if you think you don't have much in the way of assets, it is still a benefit to you and your loved ones to organize your affairs before advanced age, illness or an accident makes doing so not practical to accomplish.

This article is intended to present general information for educational purposes, is not legal advice and should not be relied upon in connection with any particular matter. The reader is advised to immediately retain their own separate legal counsel with respect to any specific legal issue. Rights to bring a claim will expire through the passage of time by the applicable statute of limitations.

Ralph E. Elliott practices law at Law Offices of Ralph E. Elliott, A Professional Corporation which is comprised of Freeport Illinois Lawyers who have over 34 years of experience including an Estate Planning and also an Estate and Trust Administration practice. The firm is situated at 1005 W. Loras Drive, Freeport, IL 61032 which serves business, individuals and the agriculture community in Northwest Illinois.

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Utilizing Probate Attorneys For Future Planning

There are so many pieces that must fall into place for a complete financial, senior care and estate plan to be legally realized. Utilizing probate attorneys to complete these requirements in full and in a timely manner is important. A guardianship lawyer will specialize in gathering all of the necessary information to put a secure plan in place to protect you and your family in the case of emergency or drastic change of life. They also specialize in money saving techniques to accomplish financial goals now, in order to leave to important and loved family members later.

Protecting Your Spouse And Family With Planning By A Guardianship Lawyer

There are many laws in place today that can prevent an individual's spouse, next of kin or partners from receiving your assets or young children at end-of-life. Without the proper filings in place, all of the assets and finances that an individual has worked for can easily be depleted with final living costs, taxes and more. Children can be put into the hands of the state without the work of a guardianship lawyer. This is why probate attorneys have a crucial position in our society. They work to protect us from the burdens we do not wish to leave behind when we are deceased, and keep our children and family protected.

Partner Benefits And Smart Planning Via A Guardianship Lawyer

Finding a firm that specializes in future and present planning for same-sax partners can be a difficult task. There are few firms that truly know and understand the needs of two individuals that cannot often be legally recognized in marriage or by law, but wish to protect each other and their children during and after life. When choosing probate attorneys for life partners, be sure to ask if the firm you are looking at hiring has done work with partnerships and guardianship issues in the past. The more experience a guardianship lawyer may have, the more secure you can feel in knowing everything is in order now and in the future for your loved ones. Legal contracts will have to be bound regarding the couple's wishes, but will be presented in times of hardship, illness or death.

Pre-Planning For Life Within An Assisted Living Situation

Few individuals choose to plan for assisted living. It is not an 'if' situation, but rather a 'when' situation. Don't be afraid to ask questions regarding future life in a nursing home or an assisted living arrangement. A guardianship lawyer will be quite up to date on the proceedings required if any of these cases arise.

As an individual gets older it is more difficult to deal with finances. Perhaps one wishes to grant their power of attorney to a child or spouse in the case that they wish not take care of their own finances after a certain point? In the case that an individual may have to live temporarily or permanently in a nursing home, it is important to have pre-arranged what will happen with respect to personal belongings, homes, children and assets. All of these items have worth, either financially or emotionally. For this reason, it is important to make sure they are being left in the hands of those you choose. Contact probate attorneys to plan for your present and your future, protecting yourself and those you love.

Peck Bloom's experienced professionals are the Illinois probate attorneys you want on your side when considering guardianship in Chicago. Experts in their field, this Chicago guardianship lawyer team will assist you in building security now and in the future. To chat with a live representative, visit the firm's website.

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What Exactly Does An Estate Planning Attorney Do?

When deciding whether or not to hire an estate planning attorney, it is important to know exactly what they do and what services they have to offer. These proceedings are undertaken as a means of legally and formally preparing for future life and after-life. This can include protection of assets, health, power of attorney and much, much more. Estate lawyers and their firms work with respect to your post-life planning, while keeping you involved and informed along the way. There are several important decisions to make regarding where all of these items will go.

These professionals know the ins and outs of the court system so that all paperwork is fulfilled completely and on time. There is a formal process for carrying this legal documentation through the court system, which experienced estate attorneys will fully understand and can simplify into terms their clients can appreciate.

Estate Attorneys Take Planning To The Next Level

An experienced lawyer knows and understands all that is required so that your assets are completely protected in the case of illness or even death. Hiring an estate planning attorney that has completed cases like yours before can also speed-up the process and reduce the learning curve. Nobody wishes to spend months getting their information together should there be a serious accident in the future.

The complexity of most legal documentation is why ninety-five percent of individuals hire estate lawyers for their paperwork. Most do not wish to face the possibility of losing assets, including that of money and belongings, due to miscommunication or lack of knowledge of court procedures. All of these items are specific to each specialist, due to the work it took to acquire the knowledge. Speak to several professionals prior to hiring the one you and your family feels best suits your needs.

What Types Of Situations Do These Professionals Handle?

The types of cases that these particular legal professionals take on is completely dependent on the firm, their availability and their willingness to take on a particular planning situation. Working on the fine details of a life and after-life planning day in and day out can easily and quickly become a full time job. Therefore, it is often necessary for most of us to hand-off the responsibility to someone who can put their complete effort into it.

It's important to note that these proceedings are also an ever-changing legal process. What was legal and protective one year may have changed due to federal or state regulations the year after. To fulfill all paperwork and legal notations required can take anywhere from a few short days or weeks before everything is complete. Be patient and understand that good legal work does take time and proper filings.

What Types Of Suits Do They Not Handle?

Small suits regarding items such as traffic tickets, small family disputes and other such situations are normally taken on by general practice lawyers. For professional assistance in asset protection, contact your local estate planning attorney for valuable answers to your questions.

Peck Bloom's experienced estate attorneys in Chicago specialize in elder law and estate planning. Choose estate lawyers in Chicago that can help you plan for your future. For advice and counseling from a professional estate planning attorney in Chicago, visit the firm's website.

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How Guardianship Lawyers Can Make The Estate Planning Process Easier

Estate planning is a vital part of getting older. Although many people believe they only need to create a plan if they're extremely wealthy, this isn't the case. If you have children, retirement accounts such as a 401K or IRA, life insurance or other assets, you need an estate plan before you die. Many people think they can handle this process themselves, however this is an extremely bad decision. By trying to plan what happens after you die yourself, you could miss out on an important document or increase your loved one's tax liability unnecessarily.

Know What Documents You Need

Do you know what a power of attorney is? How about a will? What's the difference between a will and a living will? An estate planning or guardianship attorney will know which documents are appropriate in your situation and will be able to help direct you toward the right ones. Recently, document preparation sites have popped up all over the Internet. While you might be tempted to use one of these, this is usually a bad idea. These document services are okay if you know exactly what you need, but most people can become easily confused by the different types of documents available and find that they need to consult an attorney anyway.

Reduce Your Tax Liability -- Legally

After you die, the taxes levied on your loved ones can be steep. An attorney will be able to help you disperse your wealth before you die, which minimizes the amount that your loved ones will need to pay upon your death. The laws and regulations that can allow you to reduce the tax liability can be confusing, so it's a good idea to have an attorney help you with this process. After all, if you disperse your wealth incorrectly, your loved ones could be required to pay even more in taxes, which is the opposite of what you're trying to do.

Guardianship Lawyers Can Help With Both Children And Adults

Guardianship lawyers can also help with determining what happens to both minor children and dependent adults. People today live longer and are having children later in life, which means that it's sometimes necessary to consider both minor children and elderly parents when working with a lawyer. A guardianship attorney will be able to draw up the right kind of paperwork, which protects your children and parents against having your wishes contested by guardianship lawyers working for other family members. Before having your guardianship lawyer name a specific person in the estate planning documents, make sure you talk to whomever you want to name as the responsible person. You don't want this to be a surprise sprung on them after your death.

Using an attorney to prepare for your death isn't just smart - it's a gift to give your loved ones. With so many different things to consider when planning what happens to your estate after you pass, hiring an estate planning or guardianship lawyer is an intelligent decision.

Peck Bloom is a firm of Chicago guardianship lawyers that can help clients with the estate planning process. If you need a guardianship attorney in Chicago, or you're looking for a guardianship lawyer in Chicago to contest the guardianship of a family member, visit their site to chat with a live representative.

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