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A comprehensive special needs plan is essential when a person with special needs requires support. Families often consult estate planning attorneys to understand how best to safeguard their loved ones.
The primary focus of such a plan is to ensure the long-term health, welfare, and maintenance of the individual. This includes addressing their medical needs and determining how these needs will be funded. The plan encompasses the physical care, decision-making related to it, and the financial support required.
To plan for the well-being of a special needs child or loved one after the demise of a parent, grandparent, or any loved one, it’s crucial to have a comprehensive special needs plan.
This plan typically involves appointing a primary caregiver and decision-maker for the special needs person’s physical, medical and financial needs. Additionally, it designates individuals responsible for making investment and financial decisions, ensuring the individual’s care is adequately funded.
A special needs trust is integral to a comprehensive special needs plan. While it resembles the conventional trust format, it offers more specific provisions tailored for special needs planning.
Typically, these trusts are irrevocable, meaning they cannot be terminated until the special needs individual passes away or until the funds expire. The trust acts as a separate entity, enduring beyond the lifetimes of parents, grandparents, and other loved ones who established the special need trust. Its primary purpose is to cater to the needs of the person with special requirements.
Within the trust, appointing a trustee is a pivotal step. This trustee is responsible for decision-making, especially concerning the funding of care. The trustee will often engage in hiring facilities or individuals to assist with the daily and long-term care of the person with disabilities.
Special needs trusts frequently include provisions detailing how the funds should be used to support the individual who has special requirements. Among the various ways these funds can be allocated, education and vocational needs are very important to allowing the special needs individual to live a full life.
The trust ensures that the individual is not only provided with basic necessities like food and shelter but also has access to educational and vocational opportunities.
After establishing a special needs plan, it’s vital to review it periodically to ensure its continued relevance to the individual’s situation. Adjustments might be necessary to better cater to their needs. Open communication within the family or caregivers is also essential.
When a special needs trust is set up for an individual, multiple generations can contribute to it. For example, if parents establish a trust for a child with Down syndrome, the grandparents can also allocate a portion of their estate to the special needs trust. This unified approach ensures the individual benefits from a single decision-maker and multiple funding sources throughout their life.
For more information on the Components Of A Special Needs Plan, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (831) 480-6608 today.
Note: This article is not intended to serve as legal advice but only a resource. For legal advice regarding charitable trusts and your particular matter, please contact Jeannette Witten with Hudson Martin PC. This article is published by Hudson Martin PC with appreciation and credit to attorney and team member Michele Lyons.
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