Special-needs trusts for special kids with autism
by Scott
A story in the Indianapolis Star called Special-needs loved ones require special estate planning points out how important — and difficult — it is to plan for the future of a child with special needs.
Financial planning is difficult enough. But planning when you have a special-needs child can be that much harder. Sometimes, the children need help managing their finances, well into adulthood. And sometimes, even the adults can make big mistakes, such as giving the children a gift that can push the children over the threshold where they are no longer eligible to receive government care.
I was interviewed for the story, and I told the reporter that here at Easter Seals Crossroads, we often hear from families requesting help with estate planning. Some of them worry they don’t have the funds to allow them to see a specialist, but that’s never the case.
“When it comes to financial planning, you don’t have to be Rockefellers,” Fogo said. “The common denominator, regardless of wealth or absence of wealth, is the concern about the child for the future.”
A person with autism or other special needs has to keep their income level low to continue receiving government benefits. This means that if a well-meaning relative gives a gift directly to a loved one with special needs, that person could lose their benefits.
One way to avoid this problem is to establish a special-needs trust for the child. The family designates someone to oversee the trust, usually a sibling or other relative. Mass Mutual, one of Easter Seals’ national corporate partners, offers helpful resources that explain more about special trusts, and Kevin Clasen, a special-care planner of MassMutual Life Insurance was also quoted in the Indianapolis Star about the value of a special-needs trust.
“If you don’t put it in a special-needs trust and the child inherits money through the normal process, the government is going to come back and say, ‘You inherited $20,000. That takes care of what we would have given you,’ ” Clasen said.
I know it’s hard to add yet another thing to a “to-do” list, but if you haven’t established a special-needs trust for your child yet, please consider doing so — it just might give you some peace of mind about the future.