Parents of a child who is receiving benefits from a needs based government program (or might be eligible for such benefits in the future) must pay careful attention to their estate planning. The options available for leaving assets to the child are:
- ● Disinherit the child, leaving the child with no financial means beyond government benefits;
- ● Leave assets to the child, causing disqualification from government benefits until the assets are spent down;
- ● Leave assets to a sibling of the child or another family member to use for the child, trusting that person will not use the funds for himself, or lose them through personal circumstances such as a divorce or a lawsuit;
- ● Leave assets to a Special Needs Trust.
The best option to provide financially for a child with special needs is a Special Needs Trust.