SOMA Living July 2022

PROTECT CHILDREN WITH DISABILITIES When it comes to designing an estate plan there is no “one size fits all,” because each family is unique. You may have a young adult child with profound disabilities who will never be self-sufficient and will require extensive support. Or you may have a child who is developing a certain degree of independence with work activity or ability to live outside your home despite their physical or intellectual challenges, and you want to make sure that those capabilities are encouraged and supported. If you have a child with disabilities, advance planning is crucial for their protection. Maintaining eligibility for means-tested governmental programs like SSI, DDD, Section 8 and Medicaid may be vital. These programs have income limits and resource limits. You may want to include a Supplemental Needs Trust in your Will and direct the child’s share of life insurance, IRAs or other inheritances into that Trust. Although a general discretionary Trust or a support Trust may be appropriate for your other children, it could be disastrous for a child with disabilities by causing ineligibility. Are your parents thinking of excluding the disabled child from their estate plan for fear of disrupting benefits or because they think s/he “won’t need anything other than governmental benefits?” The availability of housing for intellectually disabled NJ residents has dried up. There may be long waiting lists for other services. Nursing or health care services may be limited. A carefully crafted Trust can supplement these absent benefits. One option is for your parents to include a supplemental needs Trust in their own Wills. Another option is that parents can establish a Supplemental Needs Trust now as a “stand by” Trust which can be funded by them or others from time to time. The Trustee -- who is often the parent-- sets up the Trust account with a minimal amount such as a $100. Your child’s grandparents can then periodically place gift money into that Trust. They could name it as a beneficiary of some percentage of their life insurance policy, or include a bequest to that Trust in their own Will. FAMILY ESTATE PLANNING

Written By Linda S. Ershow-Levenberg, Esq.

The author is an attorney focusing on special needs planning, elder law and estate planning. She can be reached at 732-382-6070. Her blog is www.FinkRosnerErshow-Levenberg Marinaro.com

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