Do You Know Someone with a Special Needs Family Member?

Labor of Love. Enduring Commitment.

Taking care of a special needs family member can be a life long commitment – and beyond. Recent medical advances have resulted in the general population living longer, as well as special needs individuals. Special Needs parents are concerned about who will take care of the family member after the parents/caregiver are gone.

It is important that the special needs family member is not inadvertently listed as a beneficiary (or contingent beneficiary) on any financial assets. Old and forgotten designations may destroy the special needs family member’s qualification for government assistance. Moreover, the family member may not have the capacity for managing these resources. We suggest an annual review of beneficiary designations on all of the following financial assets or in the event of a life change:

• Life insurance policies (personally owned, group-term or policies acquired through work)
• Non-qualified annuity
• Individual retirement account or annuity (IRA)
• 401(k) or other profit-sharing plan
• 403(b) tax-sheltered annuity or account
• Pension plan
• 529 plan
• Bank accounts
• Brokerage accounts
• Real estate
• Wills
• Trusts (other than personal Special Needs Trust)

What can you do to ensure that your special needs family member will be cared for when you are gone? The parents of special needs family members, like all parents, should have the following planning documents prepared by an attorney:

• Last will and testament
• Durable power of attorney for financial affairs
• Durable power of attorney for health care

Additionally, parents of special needs family members should take the following steps with a qualified Special Needs Attorney:

• Draft a “letter of intent”
• Provide financial security by having a special needs trust
• Ensure guardianship (upon reaching the age of majority if your child is not able to  manage his or her own affairs)

Planning for the future of a special needs family member can be overwhelming and, yet, it can be the most satisfying and worthwhile endeavor you will undertake. Working with your special needs attorney, insurance adviser, and other financial services professionals who specialize in estate and financial planning for families with special needs is highly recommended.

http://www.griesseltiffanygroup.com/Do-You-Know-Someone-with-a-Special-Needs-Family-Member.5.htm