Creating a trust for your child with disabilities is an important step in preparing for his or her future. Your child’s special needs trust will safely hold assets that can be used for his or her personal care, recreation, education, and so forth without jeopardizing eligibility for needs-based benefits such as SSI or Medicaid.
However, a Special Needs Trust is not something you create once and never revisit. Instead, think of your child’s trust as a living document that should evolve and change based on the needs of your family. For that reason, we often recommend reviewing the document every 1-3 years. Reviewing the trust at regular intervals will allow you to reflect on any changes that have taken place in your child’s life so that you can update or change the trust if necessary.
During your review, you’ll want to consider the following:
- Changes to Assets. The purchase of property or other major changes in your asset portfolio should be considered when you review your trust. You do not want these assets passing directly to your child, as it could cause benefits to stop. If you aren’t sure how to “fund” your child’s Special Needs Trust or how to make sure that your new assets are directed into the special needs trust when you pass away, contact our office for assistance.
- Lifestyle and Care Changes. Your child’s care plan may change and evolve over the years. For example, maybe your child is ready to try a semi-independent living situation in a group home with peers. On the other hand, maybe your child’s needs have become so great that he or she needs in-home or nursing home care. Your trust should take into account all of these changes to ensure that assets are protected and any care that’s not covered by the child’s Medicaid or SSI benefits can be covered by funds in the trust.
- You Want to Appoint a New Successor Trustee. There may come a time when you want to swap out the trustee whom you’ve appointed to manage your child’s affairs when you can no longer do so. For example, you may have initially selected a grandparent to serve as Successor Trustee who has since passed away. Or maybe the person you picked no longer has a close relationship with your child. Whatever the reason may be, you can update your choice of Successor Trustee as you see fit.
- You are Ready to Pass the Baton. While parents typically serve as the initial trustee of their child’s Special Needs Trust, there are times when this becomes a less desirable option. If the parent is in poor physical health or is beginning to suffer from dementia, for example, it is very important to discuss this with a Special Needs Planning lawyer and possibly prepare to pass the baton to your second-in-line choice.
Because life changes so frequently, it’s critical to keep an eye on your child’s Special Needs Trust to ensure it still meets your family’s needs. If you have questions after doing your annual review this year, please do not hesitate to contact us to schedule an appointment so that we can help you update your document properly. To schedule an appointment, contact our Brandon Special Needs Lawyers at (813) 438-8503.