- Posted July 9, 2022
How to Make Sure Your Assets Go to a Child With Disabilities
Before you pass away, there are steps you can take to ensure your assets are distributed to your family members. However, this process becomes slightly more complicated when you have to consider giving your assets to a child with disabilities. To ensure your assets go to your child, utilize the following tips.
Update Your Beneficiaries
When you pass away, any remaining amount of money from your financial accounts will be able to be passed on to your beneficiaries. These are individuals that you have chosen to pass these funds onto, so it’s important to keep this list updated. If you have a child with special needs or disabilities, be sure to list them as a beneficiary of your account. They will be able to use any leftover money to pay for things they may need. If you do not leave a designated list of beneficiaries, this can delay the transfer of funds, and cause more work for your child. To update your beneficiaries, you can log in online to your retirement fund and update the information, or submit a form physically.
Use a Trust
The probate process can take months and complicate things for your heirs. A trust is an alternative option to leaving a will upon your passing, which can allow you to bypass the probate process. Establishing a trust allows for a direct transfer of assets to your beneficiaries after you pass away. These assets will be handled by a fiduciary who keeps trustees in accordance with the original terms of the trust. If your child has a disability, consider leaving them an inheritance in a Special Needs Trust. This provides a designated trustee to act as your child’s money manager and make sure they can be taken care of financially. This also allows your child to continue to qualify for public assistance programs.
Create a Letter of Intent
A letter of intent is a document that allows your child to continue to be taken care of after your passing. If your child is unable to manage taking care of themself, a new legal guardian will need to be appointed after your death. A letter of intent is basically a guide for this guardian to best know how to care for your child. This document can go through things like your child’s daily schedule, diet, medical care, and more. Have a new legal guardian chosen before your passing, and be sure to keep them updated on where they can find this letter of intent. This allows your child to remain comfortable and manage the difficult transition of guardianship as easily as possible.
Estate planning services are already a very intensive process, but it becomes more so when you have to consider the care of a disabled child. Taking these steps can allow your child to be more at ease after your passing, and keep them well cared for. Do any further research into estate planning for your disabled child to make sure they receive your assets.
Check out this article on how inflation affects social security disability benefits!
Contact Planning Across The Spectrum for certified neurodiverse financial planning services..