If you have a child with special needs, then it is even more important than ever to get your estate plan in place. They may be less able to earn an income than other children and also have greater medical costs than others so struggle to support themselves once you are gone.
Here are a few considerations:
1. Name a guardian
Most guardianships end when a person reaches 18, but in the case of a child with special needs, it might be necessary to extend it. As the role can bring even more responsibility than usual it is crucial to think carefully about who you pick and put a backup option in place.
2. Protect their entitlement to benefits
There is often government assistance available to those with special needs. However, if they inherit money from you, it could reduce their entitlement to that assistance. What could happen is they need to pay for everything from the inheritance they receive, and as the costs of health care can be high, it could soon empty the inheritance pot you worked so hard to build. Moving the money into a trust for them could mean they can benefit from both the inheritance and the government assistance. Be sure to do it soon though, as lookback periods can apply for things such as Medicaid.
3. Consider your other children
If you have other children, you need to work out how best to split things. While they may be more capable of supporting themselves, they may feel aggrieved if all your inheritance goes to support their special needs sibling.
Learning more about your options will be wise if you have yet to make your estate plan or if you need to update it.