Estate Planning Attorney: How Much Should You Leave in a Special Needs Trust?

If you have a loved one with special needs, you may have considered a special needs trust. As a parent or guardian, it’s not easy to know how much support your loved one will need when you pass, but you want to make sure that their future will be financially secure. The expert attorneys at Davidson Law Group are here to help. Read on in today’s blog to learn how much you should leave in a special needs trust for your loved one.

How Much Should I Leave in the Special Needs Trust?

If your loved one is the only person you intend to provide for after you pass, then you might consider putting your entire estate into your special needs trust. However, many people wish to leave money to other family members or charities as well. Here are some factors to weigh as you think about how much to leave to the special needs trust and how much others will receive.

Your Family

Ask yourself: Do you want to divide your property evenly or leave a larger share to the special needs trust, assuming your other loved ones can care for themselves? There are no simple answers, but it’s a good idea to discuss this with family members.

Your Life Insurance

Many parents of children with disabilities purchase life insurance. This allows you to leave a hefty sum to the Special Needs trust under the life insurance policy and still provide for your other family members.   

Related Post: How to Leave Property to a Special Needs Trust

Your Loved One’s Life Expectancy

When deciding what and how much to leave behind, it’s important to think carefully about the future. This means considering your loved one’s life expectancy and the number of years remaining until you plan to retire. These estimates — combined with estimates of the annual cost of providing for your loved one’s needs — give guidance for how much you should leave in the special needs trust.

Your Loved One’s Needs

There are likely significant, ongoing expenses involved in your loved one’s care, and there may be uncertainty about what needs may arise after you are gone. Think carefully about what you want the trust fund to supply for your loved one, and how much money that will require. This may include personal needs, medical care, housing, and education costs.

Determining how much funding a Special Needs trust requires is no small task. It’s best to get help from the estate planning attorneys at the Davidson Law Group.

Related Post: Special Needs Planning Case Study: A Teen Boy Who Became Disabled

Contact an Estate Planning Attorney at Davidson Law Group

If you have beneficiaries with special needs, it’s not too early to begin planning your estate. Seek the expertise and advice of a skilled estate planning attorney from the Davidson Law Group. To learn more, contact us in Fort Worth, Allen, or Tyler and schedule your free consultation.