If you have a son or daughter in Washington State with special needs, you know that there can be many additional costs and logistics associated with caring for them than with a child who does not have such needs. While you no doubt put a lot of time and effort into caring for your child today, you should also put time and effort into providing for their care after you die. There are a variety of considerations you should factor in when choosing how to do this.
As explained by Fidelity Investments, one of the things you should take into account is how to appropriately leave money or assets for your special needs child without negating their ability to receive government benefits. There are some types of trusts designed to do just this and each one may function somewhat differently in part based on where the assets come from. A first party special needs trust will be funded by assets inherited by the special needs person directly after the death of the benefactor. A third party special needs trust will be funded by assets while the benefactor is still living.
For families with other children, it is recommended that a family conversation be had surrounding the care and financial plans for the special needs child so as to avoid surprises or problems down the road.
If you would like to learn more about how to properly plan for the future financial stability of a special needs relative, please feel free to visit the special needs trust and care page of our Washington State estate planning website.
