For many families that include a child with autism, the questions concerning who will take care of the child in the future and where the money to support that child will come from are daunting thoughts. Some parents choose to postpone planning rather than deal with the difficult reality that faces them; however, early, careful planning can secure a disabled individual’s future long after his or her parents have passed away.
Parents and grandparents who continually put money and other property in the child’s name, even as part of jointly held accounts, could be doing a disservice to that child. A disabled individual is actually precluded from receiving means based government entitlements, such as Medicaid and Supplemental Security Income (SSI), when assets held in that person’s name exceed a specified amount. By contrast,completely disinheriting the child and relying solely on the government is not necessary and hardly qualifies as sound planning. Smart, proper planning is best achieved by creating a scenario that includes full eligibility for the government assistance, as well as whatever private resources the family can leave to provide a more comfortable future for their family member. This best of both worlds approach is accomplished with a Supplemental Needs Trust.
The Supplemental or Special Needs Trust is often referred to as the cornerstone in formulating a plan to care for a child with disabilities. It is typically established as part of a comprehensive estate plan and funded with an inheritance and/or life insurance products, such as a second to die policy. If drafted correctly, the assets that fund a Trust will provide the “extras” for a beneficiary (the disabled individual) without affecting or disqualifying the beneficiary from those important government programs. The child retains the right to receive these means based benefits because this type of Trust is not considered a countable resource by the government. Once the Trust is established, it’s usually managed by a person known as a Trustee, generally someone similar in age to the disabled individual; there are also organizations and institutions that provide Trustee services. It should be noted that when a Trust is funded with money or assets of the beneficiary, such as a recovery from a lawsuit or a gift/inheritance directly to the disabled individual from another family member, payback rules apply with regard to the government benefits received by a disabled individual over the course of his or her lifetime.
When properly created, a Supplemental Needs Trust provides a comfortable and secure future for the individual with autism, enhancing the quality of his or her life by providing funding for the “luxuries” in life not supplied by the government, while not affecting that person’s rights to receive government benefits.
Andrew is the principal of the Law Offices of Andrew M. Cohen located in Manhattan and Garden City, and he is the father of three daughters, one of whom has multiple disabilities and graces the cover of his business brochure. His practice focuses on Trusts & Estates and Elderlaw, with an emphasis on planning for families with a disabled child. Andrew is a charter member of the Academy of Special Needs Planners, a national organization of attorneys who are dedicated to providing high quality legal services to the disabled community and, in May 2010, he was selected by Exceptional Parent magazine to receive its Maxwell J. Schleifer Distinguished Service Award. Andrew was added to the Long Island Board of Directors of Easter Seals New York in February 2011 and he was an advisor to Parents magazine for its March 2011 commentary on special needs planning. Andrew believes that it is crucial for parents of individuals with special needs to make all of the arrangements necessary to protect and provide for each family member, and he is a frequent lecturer on this topic. Visit www.amcohenlaw.com for additional information about Andrew and his practice.
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