Decoding Special Needs Planning in Metairie and New Orleans, Louisiana
Metairie and New Orleans special needs planning involves the setup of a plan for special needs family members.
Louisiana families who have a family member with a disability must plan for the future very carefully. How assets are left after your death can have a tremendous impact on the quality of life for that person. To protect a person with special needs, a well-defined estate plan is vital.
Many parents assume that making sure a child is financially secure after they are gone means leaving the assets outright to the children. For many reasons, such as a child’s inability to manage finances, the outright distribution of your assets to your children may not be the most prudent option. This becomes especially true if any of the beneficiaries of your estate have, or develop in the future, special needs, and require the assistance of government aid. Be sure to request our Special Needs Planning Bundle (to the right) to avoid missing any key benefits for your child!
Know Your Options
Leaving assets outright to a special needs child could render them ineligible to receive otherwise valuable government assistance until those assets are exhausted. In Louisiana, the problem is exacerbated by the fact that Louisiana forced heirship laws mandate that a child with a permanent disability must receive an inheritance from the child’s deceased parent. But what is a parent to do to avoid this result?
One option is to disinherit the special needs child completely, thereby allowing the child to receive aid from the government they would otherwise not be able to receive with an inheritance. Although the parents could instruct their other children to care for the special needs child, there is no guarantee that this will be done. Additionally, there is no assurance that the government program will continue in existence or will provide the expected level of assistance. Finally, and possibly most significantly, the psychological effects of disinheriting the child could be devastating to the child and the parents during their lifetimes. Therefore, for most parents, this option is not an option at all.
Fortunately, there is a more viable option for fulfilling a parent’s desire to care for a special needs child. This option won’t interfere with his or her ability to receive government assistance: the Special Needs Trust. Special provisions can be included in a trust that limits the child’s access to the trust assets and, hence, the inheritance’s effects upon assistance eligibility.
How a Special Needs Trust Works
The Special Needs Trust allows you to provide money for the care of your special needs child. A parent, grandparent, or guardian can provide funds for the child without disrupting the child’s eligibility for government aid. Setting one up is a fairly simple process. Working with your estate planning attorney, you appoint trustees for your child’s trust. The trustees will manage the assets you transfer to the trust for your child’s benefit. In the event of your disability or death, the trustees will also supervise your child’s finances.
During your lifetime, you can serve as trustee and remain in complete control over your child’s finances. Should you die, however, your successor trustees will step in and take care of your child’s finances on your behalf. When setting up your child’s Special Needs Trust, you will provide detailed written instructions to direct your trustees’ activities. By law, trustees must follow these instructions. You can take comfort that your child’s education, housing, and other needs are being taken care of.
Best of all, the Special Needs Trust will preserve your child’s eligibility for federal, state, and charitable benefit programs. This is accomplished by providing that the funds can only be withdrawn from the Special Needs Trust for purposes other than those covered under the governmental and private benefit programs.
Morrison Law Group PLC is Proud to Announce Our Partnership with the Autism Society of Greater New Orleans
Morrison Law Group PLC is proud to announce a new partnership with the Autism Society of Greater New Orleans. This partnership reflects our shared dedication to supporting families with special needs planning.
Upcoming Special Needs Planning Events
Later this year, we will be hosting two webinars in collaboration with the Autism Society. These sessions will provide valuable insights into special needs planning. Details and registration information will be available on our website soon.
We’re excited about our 2nd annual POA-palooza day this summer! This event is dedicated to exploring the intricacies of power of attorney in special needs planning.
Join Us and Stay Informed
We invite you to join these upcoming events. Keep an eye on our website for updates and registration details. Your participation is a step towards better understanding and managing special needs planning for your family.
Your Southeast Louisiana Special Needs Planning Attorney
It’s a difficult subject, but all parents owe it to their children to ensure their future is secure. Parents of children with special needs face an even greater imperative to do this essential planning. Contact Metairie and New Orleans Special Needs Planning Attorney, Chip Morrison at (504) 831-2348. If you have questions about estate planning for your loved one with a disability, we’re here to help.
