The following article will cover: How a special needs plan can address the educational and vocational needs of the individual. Steps for ensuring a successful implementation and ongoing management of a special needs plan. Tax implications associated with special needs planning. How Can A Special Needs Plan Address The Educational And Vocational Needs Of The Individual With Special Needs? Addressing the educational and vocational needs of an individual with special needs involves a combination of a comprehensive letter of intent and a fully funded special needs trust. Consider the capabilities and desires of the individual: do they want to continue in school, and if so, is it public school or specific programs? If they wish to go to college, the financing for it should be available in the trust. The letter of intent can express the parents' wish for their child to pursue an advanced degree. However, remember that this document only suggests this to the trustee and doesn't obligate them to pay for it. Therefore, choose a trustee who aligns with your desires and will follow through with them. What Steps Should Be Taken To Ensure A Successful Implementation And Ongoing Management Of A Special Needs Plan? A successful…Read More
The following article will cover: The financial considerations to take into account when creating a special needs plan. An overview of government benefits available for individuals with special needs. The role of a special needs trust in maintaining eligibility for government benefits and enhancing the individual's quality of life by providing additional resources not covered by benefits. What Financial Considerations Should Be Taken Into Account When Creating A Special Needs Plan? When crafting a special needs plan, a comprehensive understanding of the individual's financial situation is crucial. Begin by determining their budget, considering factors such as rent, living expenses, food, entertainment, and medical costs. Eligibility for programs like access (AHCCCS) or Medicaid can significantly reduce medical costs. However, Supplemental Security Income (SSI) provides a limited amount (approximately $914 per month), which may not suffice for all expenses. For additional funds, one might consider a third-party special needs trust, often funded from a deceased parent's estate. Many special needs plans incorporate life insurance for the parents to fund this trust. The earlier you start this conversation, the better, as life insurance premiums increase with age. Consequently, a permanent policy may be necessary for adequate trust funding. Hence, it is essential to develop a…Read More
The following article will cover: The importance of special needs planning for individuals with disabilities and the need for a well-structured plan that caters to their special needs. The key components of a comprehensive special needs plan. The difference between special needs planning and traditional estate planning. What Is Special Needs Planning, And Why Is It Important For Individuals With A Disability? Special needs planning is a crucial process for individuals who may not always be able to plan for themselves. Its complexity comes from the unpredictability surrounding special needs and the ever-changing landscape of law and medicine. However, amidst this complexity, a well-structured plan can provide a sense of security. The inclusion of special needs planning within an estate plan, for example, is not an option but a necessity. With advancements in medicine, a condition considered a special need today might have a cure tomorrow, further emphasizing the importance of developing a life plan that caters to these special needs. What Are The Key Components Of A Comprehensive Special Needs Plan? A comprehensive special needs plan typically consists of six critical steps: Estate planning: Start by excluding the individual with special needs from all assets in the estate. This prevents…Read More
While no one wants to sit and think about — much less plan for — their own death, once you have responsibility over a child, doing so becomes essential. This article dives into the consequences of leaving minor children behind after you die without proper estate planning measures and discusses the tools, techniques, and legal mechanisms you can put in place to protect your children. It will help you understand: Whether you know what will happen to your minor children if you die tomorrow. How including a guardian nomination in your will can help ensure your child’s safety. How to plan financially for the care of your children after your demise. What Could Happen To My Minor Children If We Die Without Proper Estate Planning In Place? Without estate planning to guide and ensure the future of your minor children after your death, the outcome will be up to fate and a court to decide. Hopefully, family members or even family friends would come forward to try and petition the court for your children. But if none did, the Arizona State Department Of Child Safety or Child Protective Services would no doubt have to take custody while looking for a…Read More
