Davidow Articles

Can I Leave Money in my Will to my Child with Disabilities?

Many parents of children with disabilities feel anxious over their kids' futures, especially when contemplating what their lives may be like without Mom or Dad.

Will their current standard of living be maintained? Will there be the same "quality of life?" Many parents have arranged for SSI and Medicaid to provide their child's basic necessities, but have supplemented these basics with their own money. How will this supplementation be provided in the future? What are the choices?

When a disabled adult is receiving SSI and Medicaid, parents should know that no money can be left directly to their child, by will, or otherwise, because assets left in the child's name would cause disqualification for needs-based benefits and programs.

Leaving assets to other family members to hold for the disabled relative may work in some limited circumstances, usually when very little money is involved. But parents still experience sleepless nights as they consider everything that can go wrong. What will happen upon the death of this trusted family member? What if this person had creditors, got divorced, or simply had other priorities for this money?

The solution for this problem is the SPECIAL NEEDS TRUST. While there are several types of Special Needs Trusts, the common denominator is the ability to fund the trust with assets which can be used by a person on SSI and/or Medicaid, without disqualifying them for these needs-based programs. These trusts can be created by will or by a living trust. Moreover, with living trusts, they can be created to take effect immediately or some time in the future, such as the death of the parents.

If you set up a Special Needs Trust, the trustee can buy many of the things your son or daughter will need. The trust can pay for an advocate to make sure your loved one gets the services he or she needs when you aren't there to help out. The trust can pay for vacations, social events and sporting goods.

If Medicaid won't pay for certain medical care or treatments, the trust can step in and provide those. Occasionally, people with mental disabilities are wrongly accused of crimes. If your son or daughter has a Special Needs Trust, the trust can pay for good legal defense.

The trust can buy a house for your child to live in, or it can pay for an advocate to insist that your loved one be granted services by the government, as required by law. For people who are not especially wealthy, a Special Needs Trust is still a good idea. It can even be funded with a life insurance policy.

A special needs trust can help your son or daughter to live better. It can also help a parent to sleep better.

[back to the ARTICLES index page]

CLICK HERE TO MAKE AN APPOINTMENT WITH DDSS