Association for Science in Autism Treatment
Autism Network International (ANI)
Autism National Committee (AUTCOM)
I want to care for my child after I’m gone, but I was told by my lawyer not to leave any money in my child’s name. Why is that?
In many states of USA, money in your child’s name can disqualify him or her from future state and federal financial aid. It may also trigger reclamation of past benefits that the child has received from the government, especially by Medicaid.
Before any money or other assets are left to your child with disabilities, you should first check with your legal or financial advisor. This may include any outright gifts of money or real estate or naming your child a direct beneficiary of your life insurance or retirement fund. If you have friends or family members who may want to give gifts to your disabled child, make sure these gifts do not result in more harm than good.
There are several ways to leave money for your child’s care without disqualifying him or her from federal benefit programs.
Why does a parent with an autistic child need a will?
An autistic child may require supervision and financial support long after a parent has died. A well-written will can guarantee that your instructions will be known and followed after your death.
To die intestate-that is, without a will-places both your assets and your disabled child at risk. Without a will, your child could suffer great financial and emotional hardship, even if you know people who want to care for him or her and you have enough assets to see to his or her financial needs after you’re gone.Without a will expressing your wishes, any of the following could occur:
The distribution of your assets would be determined by an unknown judge in a probate court. This process could take months to resolve, and rather than having your assets distributed in accordance with your wishes, they are distributed in the way the court feels is appropriate.
Your child could become a ward of the state. Courts would appoint a guardian who would be responsible for raising the child and administering any assets the child would receive from you or others.
Your child could lose Medicaid benefits; then could be reduced to poverty through Medicaid reclamation. The state could go back years and demand repayment for past benefits, taking all or a portion of your child’s inheritance.
Your child could lose future Social Security benefits.
Your adult (but disabled) offspring could be placed in charge of all your estate’s assets and struggle to manage an inheritance he or she is unable to manage.
Unscrupulous financial or legal “advisors” could take advantage of your child.
There is a lot to consider.To ensure the safety and protection of your child, consult a lawyer familiar with the needs of disabled children and make your wishes explicit in a written will.
Term:
Guardian – An individual who has been entrusted by the law for the care of another person, for his or her estate (finances), or for both
A wellwritten will can guarantee that your instructions will be known and followed after your death.
What is a will?
A will is a written legal document that provides instructions for the disposition of your property (also called your assets or your estate) after you have died.
The term “last will and testament” is simply a more complicated name for a will. A will is generally prepared with the help of an attorney.
A will is necessary for anyone who cares how their property is distributed upon their death, who would handle matters for those left behind, or who would serve as guardian for their minor children. The parents of an autistic child need to keep in mind that bequests made in a will can have an effect on their child’s eligibility for federal benefits. If the disabled child is a direct beneficiary of money or other valuable assets with a value of greater than $2,000, this may disqualify the child from state and federal benefits.
When preparing a will, three people need to be identified within your will to make sure your wishes are carried out. These are the guardian, the trustee, and the executor.
The guardian is a responsible adult whom you put in charge of caring for and raising your children who are less than 18 years old or any disabled adult child.
The trustee is the person who will manage any property you wish to be held in a trust vehicle, usually What is a special needs trust? A special needs trust (also called a supplemental needs trust) is a legal vehicle that harbors assets for a disabled child or adult such that the resources are not considered in determining eligibility for government benefits. Afor future use by beneficiaries.
The executor for your estate is one who will be responsible for ensuring that all of your wishes as articulated in the will are carried out.A special needs trust can be relatively inexpensive to establish and very often is a one-time investment.
Special needs trusts have become the planning tool of choice for many families of dependents with special needs. They can accomplish several goals that include:
- Providing funds for the care of the individual with special needs without disqualifying him or her for government benefits
- Keeping assets out of the child’s name and control
- Providing for the professional management of assets
A special needs trust is not like a regular trust fund. Mistakes made now in setting up the trust can be costly later.
Therefore, although any attorney can set up a special needs trust; families should contact an attorney with experience in estate planning for those with developmental disabilities to set up such a trust for their child. A special needs trust serves no purpose if there is not enough money in it to help your child when you’re gone. Once the trust is established, parents, friends, and other family members can contribute to the trust.
However, once the money is placed in the trust, it cannot be removed by the guardian or trustee, except for the specific benefit of the beneficiary. This limitation makes it common practice for parents and others to contribute little in the trust fund during their lifetime, since they may have unexpected needs for the money. Making the child’s trust fund the beneficiary of bequests in the will or the beneficiary of a parent’s life insurance policies, annuities, and qualified plans is now common. Finally, other family members and friends who want to help can put money into the trust.
Term:
Special needs – The unique, out-ofthe-ordinary concerns created by a person’s medical, physical, mental, or developmental condition or disability. Additional services are usually needed to help a person in one or more of the following areas: thinking, communication, movement, getting along with others, and taking care of self.
