Earlier this month, we posted a blog about some situations that your child may need to have a special needs or supplemental needs trust (we will refer to it as a special needs trust for this post). What we would like to do now is explain some of the consequences for not having one when it is necessary. There are two times that a trust would typically come into play. The first is one we hope doesn’t happen, but feel very strongly that everyone should plan for. That situation is if disaster hits and you as the parents of your child pass away. The second is when the inevitable happens and your child turns 18, or for some of you has already turned 18.
Special Needs Trust Introduction
We will tackle each of these scenarios separately. If something would happen to both parents of your child, presumably, your child would receive an inheritance. That could be anything from life insurance to your retirement accounts to other physical assets like your house. As soon as that happens, your child has “income”. The state would then be able to count that as income when determining whether your child is eligible for aid or not. It’s entirely possible that this would put them over the threshold and force them off of state aid, even if only for a year. If that happens, we all know how difficult it can be to get those same services back. The other part of the special needs trust that’s extremely important for your minor children is to appoint someone to be the guardian for your child that has the ability to care for them as well as to appoint someone to handle the finances. This could be the same person, but it may not be. You may have someone that you trust to take care of your kids, but doesn’t know how to balance their bank account. Or someone that is really good with money (and cares about your child), but wouldn’t know the first thing about how to keep a hectic schedule of shuttling kids from therapy to school to any other event. That’s OK, a special needs trust can help you define who does what.
The other scenario is when your child turns 18 and is no longer considered a minor. At this point, your child may be able to earn a living and income. They may also still need medical aid through the state. They may still be susceptible to people trying to take advantage of their generosity in a financial sense. No matter the scenario, if your child is considered special needs as an adult, a special needs trust may come into play. The same reasons apply though. Your child may still need medical assistance. You may need to watch over their finances. You will know what is best for your child, but the rules change when your child turns 18 and, often times, a special needs trust is the vehicle to help you care for them.
Register For The Seminar Now
Whether it be for purposes of making sure your child has an appropriate guardian or to make sure your child’s finances are protected, a special needs trust can help you and your child. Later this month, Omni Kiecker, Esq. will be giving a talk on supplemental and special needs trusts. She has written the book (Financially Caring for Your Disabled Child: A Guide to Understanding the Minnesota Supplemental Needs Trust) to help Minnesota parents in their fight to help their children. The talk will be on Wednesday, September, 25th at 4:30 pm in the Sakatah Room of the Greater Mankato Business Development Building. If you would like to join us, please register for the event and let us know you’d like to attend.
FREE Admission Registration Open Now
Date and Time:
Wed, September 25, 2019
1961 Premier Dr
Sakatah Trail Room
Mankato, MN, 56001