If your child has special needs, it's time to secure their future

In this article, you’ll find answers to questions like:

1. Which documents are critical?
2. What happens at age 18?
3. What are financing options?

Nearly 7 percent of Palm Beach County’s residents younger than 65 are disabled, according to the U.S. Census in recent years. What happens when their caregivers can no longer care for them or pass away?

Don’t worry, you can prepare documents and make arrangements to ensure care continues for a disabled child or adult.

1. WHICH DOCUMENTS ARE CRITICAL?

Essential documents are a basic will or revocable living trust and a special needs trust, along with a designation of a guardian. Other important documents are a letter of intent, an advance health care directive/living will and a financial power of attorney.

“So many parents don’t draw up a will because they think they don’t have any assets, but most people have a house or a car,” says Sheri Hazeltine, who is based in Lake Worth Beach as an attorney for the American Disabilities Foundation. Preparing a basic will or revocable living trust is a way to avoid probate court after the death.

A special needs trust protects your disabled child’s ability to qualify for public benefits, such as Medicaid and supplemental security income. Failure to have assets, such as legal settlements, inheritances or gifts, in a special needs trust may cause the disabled child to be ineligible for public benefits.

“If you leave money to them before they turn 18, and you leave more than $2,000 in assets to the child, it’s a deemable asset, and it’s not protected,” says financial planner Doug Vogel, a member of the Special Needs Advisory Coalition of Palm Beach County.

Caregivers can name the person(s) they want to care for their child in a document that selects a preneed guardian. Separately, a letter of intent gives instructions and information for future caregivers, such as the child’s physician, medications, personal schedule, food preferences, physical/mental/emotional history and details of the disability. The letter also can describe the parents’ vision for aspects such as religious/spiritual plans and living arrangements.

A disabled child likely can’t make decisions regarding their caregiver's care, so an advance health care directive/living will designates the person to make medical decisions on your behalf in the event you can’t. A financial power of attorney puts a trusted person in charge of your financial decisions.

2. WHAT HAPPENS AT AGE 18?

Once developmentally disabled children turn 18 years old, Florida considers them adults with full legal rights. Parents who want to continue care and decisions for their adult children via estate planning can consider guardian advocate proceedings.  

Guardian advocacy is a low cost, simplified form of guardianship that allows parents to continue managing their adult child’s lifestyle and decisions, such as medical procedures, housing, employment and contractual agreements.

3. WHAT ARE FINANCING OPTIONS?

One way for parents to fund their child’s special needs trust is life insurance, Vogel says.

“Life insurance provides money where no money exists. A survivorship, or second-to-die, life insurance policy is a permanent policy on the lives of the two people who are caring for that child, and it pays out when the last parent dies,” he says. “Because it’s a policy on both lives, the premium is discounted. It’s very affordable and sustainable for most families. The policy beneficiary is the special needs trust, guaranteeing the money will be there when it’s needed most.”

If the dependent is younger than 18 and the caregiver is older than 55 or is indigent, Legal Aid Society of Palm Beach County can provide planning services. In other cases, where the dependent is older than 18 and the caregiver has some income, they can call Legal Aid to see if they qualify for its reduced fee panel of attorneys and/or the pro bono department.

SOURCES:     

• Sheri Hazeltine, attorney, American Disabilities Foundation
• Doug Vogel, financial planner and member of Special Needs Advisory Coalition of Palm Beach County
• Legal Aid Society of Palm Beach County