Special Needs Planning

Estate planning requires customization for each individual, particularly when beneficiaries have disabilities. Failing to address these complexities can create lifelong consequences for the affected person.

Common Planning Mistakes

Outright Inheritance

The most frequent error involves leaving disabled beneficiaries an inheritance outright. This approach creates a critical problem: the recipient becomes ineligible for public benefits they may currently receive. Such disruption can impact medical care, housing, employment, and social programs while potentially jeopardizing the inheritance itself.

Even if a disabled individual does not currently receive benefits, they may become entirely dependent on them after a parent’s death. An inheritance could compromise their eligibility and security.

Naming the Caregiver as Beneficiary

A second major mistake is designating the caregiver rather than the disabled person as beneficiary. This creates numerous complications:

• The caregiver has unrestricted control over assets
• No legal obligation to continue providing care exists
• Assets become subject to the caregiver’s creditors or liabilities
• If the caregiver passes away or becomes incapacitated, the disabled person loses intended protection
• The caregiver’s children may inherit assets meant for the disabled beneficiary
• No estate tax protections apply to caregiver-held assets

Using a Will Instead of a Trust

The third critical mistake involves relying on wills rather than trusts. A Special Needs Trust specifically protects disabled individuals by:

• Safeguarding assets while maintaining benefit eligibility
• Enabling continued care without compromising public benefits
• Maintaining family privacy

Take the Right Steps

Effective planning for individuals with special needs demands personalized attention to ensure beneficiaries receive appropriate protection and resources. Contact The Stegall Law Firm to discuss how a Special Needs Trust can protect your loved one’s future while preserving their access to vital public benefits.