Ohio residents typically prepare their last will and testament to ensure their beneficiaries receive cash, real estate, jewelry and other assets according to their wishes. However, if you have a child with a disability, providing for them once you have passed away is not always a simple process. We often help clients establish an estate plan that includes a special needs trust.
Completing an analysis of potential future costs is essential for providing for your child. Kiplinger reports that a special needs trust helps you take of their needs without affecting eligibility for certain types of public benefits. The trust can also protect the contents of the trust against individuals who try to take advantage of them and their own detrimental financial decisions.
Prepare a budget
Although housing is typically the most substantial unknown cost, it is not the only one. Medical and other expenses associated with the disability can add up over time. When it comes to living arrangements, you may decide that buying a property, such as a condo may be best for your child. However, taking space in a facility that cares for individuals with particular disabilities may also be an option.
Plan for related expenses
Remember to include items like food, staffing, maintenance fees and other routine expenses in the plan. Funds typically transfer from other accounts to the trust upon your death. Not only can it cover the expenditures mentioned, but it can also the administration fees, the cost for filing taxes and other related expenses.
Depending on your child’s needs, Section 8 housing, Supplemental Security Income and Social Security Disability Insurance may be available to your child. The trust can help supplement these options so that they can maintain the lifestyle they have while you are living. Visit our webpage for more information on this topic.