If your child receives an inheritance from your estate without advance special needs planning, his or her government benefits will immediately be at risk upon your passing. Imagine the trauma of losing a parent, often a primary care-taker and simultaneously having the stress of potentially losing government benefits and requiring the need for immediate, and likely costly, legal planning. Even with immediate legal planning at that time, often, the only option is creating a “first party” special needs trust, which assets would be subject to Medicaid payback upon the child’s death. On the other hand, you can plan in advance to protect your child’s inheritance immediately upon your death by establishing a supplemental needs trust under your will, or a standalone “third party” special needs trust that would be a seamless receptible for the inheritance.
By Esther Schwartz Zelmanovitz
