#bulkish

Mistake # 1: CHILD disinherit Many disabled people rely on government benefits to provide food and shelter. If you have been advised to disinherit your disabled child, remember that these public benefits do not provide more "bare bones" essentials. Consider establishing a trust need to ensure the quality of life expenses, without interfering with eligibility for public benefits. MISTAKE # 2: Nobody knows procrastinate when they may die or become disabled. Plan ahead for your child's special needs is particularly important. Your special needs child may never be able to do for your inability to plan. Other children without special needs can work once they reach adulthood. Your special needs child, on the other hand, maybe not so lucky. A needs assessment of trust should be put in place now to protect your child with special needs. MISTAKE # 3: based on other children YOUR Many people rely on their other special needs children in a family of their own legacies. Siblings of a child with special needs often feel responsible for that child. But what if the child of divorce with the money? What if the child with the money dies or becomes incapacitated? What if the child with the money that is being prosecuted? A Special Needs Trust provides assets specifically allocated to your child's special needs with clear instructions to your other children. This can ease the burden on your children and can encourage a relationship of love and play them. MISTAKE # 4: Do not protect a special needs child predators Predators are particularly attracted to people who are vulnerable, such as youth and people with limited capabilities. A legacy through a will is public record. Using a Special Needs Trust, parents can control who has access to information on the legacy of a special needs child. The privacy of a trust can help protect your child and other family members who may be serving as trustees, from predators. Mistake # 5: TRUST DOCUMENT A poorly drafted special needs trust must be properly designed to promote quality of life for a child in trouble without this child to be eligible for public benefits. The state may not deny coverage of essential services if the trust assets are considered "available" to the child with special needs. The trust agreement must be structured as a "spendthrift" or "discretionary" trust. A "spendthrift" or "discretionary trust gives the trustee the power to determine whether or not to make distributions without limitation. MISTAKE # 6: CONTRIBUTIONS OF OTHERS NOT INVITE A major advantage of creating needs trust is now family and friends can add to confidence. This can be done either by lifetime gifts or wills. Some of the options available are naming the trust be the beneficiary of life insurance, annuity or retirement. MISTAKE # 7: CHOOSE THE WRONG TRUSTEE During your life, you and your spouse will most likely manage the needs trust. When you and your spouse are no longer able to serve as trustee, you can choose who will serve as a new trustee. You can choose a person to act as trustee or you can choose a team of directors. For example, you can select a family member that "distribution" trustee and a professional or institutional trustee as the "administrative" trustee. In addition, you can appoint a financial advisor to guide the trustee in making investment decisions or a trust protector to replace a trustee who is not taking good care of your child's special needs. MISTAKE # 8: failing to properly "FUND" A CONFIDENCE needs trust without assets will be useless to your child's special needs. Any assets that you want to put in the trust requires a change in title or ownership of the asset. For example, if you want life insurance plans or pension payable to the trust when you die, you must be sure you have filled in forms appropriate beneficiary designation. Or, if you want real estate to be invested in the trust, a deed must be executed and recorded MISTAKE # 9: USELESS "Pay-Back" PROVISIONS A common mistake is to have a "pay-back" in a provision Needs Trust when it is not necessary. These "clawback" provision when the state recovers the money spent for the child with special needs, are required only when assets of the special needs child are used to fund the trust. If the money in the trust is a "third party", which remains in the trust can go to other beneficiaries when the child needs special passes. To obtain a free copy of "Special Futures: A common sense guide to planning special needs" contact me (203) 488-5586 or [email protected].