| READER QUESTION:
We are currently foster parents to our two grandchildren, eventually moving to KinGap or Adoption. Our grandson is 11 and has some learning disabilities with emotional and behavioral issues. We are thinking about his future and establishing a Special Needs Trust for him so that he will not lose his Medicaid health benefits and any other benefits he may receive in the future. Is there a minimum age for when this type of trust can be opened? Can we deposit into it over a period of time? I very much appreciate your Listen to Lawrence Letters.
P.S. – Your firm handled my dad’s affairs prior to and after his death.
MY RESPONSE:
DON’T WAIT! Certainly, plan now, but that does not necessarily mean you need to create and fund a Special Needs Trust now.
Often, the better approach is to build a Special Needs Trust into your own Will or Trust. That way, if something happens to you, your grandson’s inheritance is protected. If circumstances warrant, a separate Special Needs Trust can also be established during your lifetime, and money can be added to it over time.
You do not need to predict today what your grandson’s life will look like as an adult. At 11, you simply cannot know what benefits he will qualify for, how independent he will be, or what support he will need. The goal is to create a plan flexible enough to protect him if he needs that protection.
Because you are also considering KinGap or adoption, be careful. Adoption could affect whose income and resources are counted, or “deemed,” to him for certain government benefits while he is a minor.
Plan now. Preserve your options. You can protect his future without having to predict it.
I hope this helps. |
Save as PDF