Ways to Plan for an Adult Child With a Disability

Estate planning is an essential process for anyone wishing to secure the future of their

loved ones. When you have a disabled adult child, the process becomes even more

critical. Providing for the future care of a child with disabilities requires a thoughtful

approach that considers their unique needs and the potential challenges they may face.

Here are some key considerations and steps for effective estate planning for the care of a

disabled adult child.

1. Special Needs Trusts (SNTs): One of the primary tools in this estate planning area is

the Special Needs Trust (SNT). This trust allows parents or guardians to set aside funds

or assets for the benefit of their disabled child without jeopardizing their eligibility for

essential government assistance programs, like Medicaid or Supplemental Security

Income (SSI). An SNT ensures that the resources provided don’t count against the child’s

asset limits.

2. Conservatorship: As your child reaches adulthood, it’s crucial to assess whether they

can make decisions independently. If they’re unable to, you might consider establishing a

conservatorship. This legal status allows you, or another trusted individual, to make

personal, medical, or financial decisions on your child’s behalf.

3. Letter of Intent: While not legally binding, a letter of intent is a document that

provides invaluable guidance for future caregivers. This letter can outline your child’s

routines, preferences, medical history, and more. By offering a detailed insight into your

child’s life, you’re ensuring that they continue to receive personalized care, even in your

absence.

4. Life Insurance and Financial Planning: Life insurance can be an effective tool to

guarantee that your child has the necessary financial resources for their future care.

Naming the Special Needs Trust as the beneficiary of your policy can further protect

those assets. Regularly review and adjust your financial plans to ensure that your child’s

care needs are met, taking into account changing circumstances.

5. Seek Professional Advice: Navigating the intricacies of estate planning, especially

with a disabled adult child’s considerations, can be challenging. Collaborating with an

experienced and qualified estate planning attorney familiar with special needs planning

can offer tailored advice and ensure that you’ve covered all bases.