DALLAS, TX (Ivanhoe newswire) — If you want to leave money or property to a child or spouse with special needs, you’ve got to plan carefully. If you don’t, you could unknowingly jeopardize a loved one’s supplemental security income and Medicaid benefits after you’re gone. We’ve got the details on a special needs trust.
Fifteen-year-old Zane Keeler is healthy, loves to dance and can’t wait to start high school. He also has Down syndrome.
“School is cool.” Zane told Ivanhoe.
The average life expectancy of a person like Zane is 60 years old, and with many surpassing this age, it was important for Zane to be set up for success in the future. So Zane’s mother Mikel met with financial advisor Holly Signorelli for guidance.
“You would want to set up a special needs trust for special needs so that your child would not lose government assistance.” Signorelli explained.
The Keelers set up the trust to support Zane when they are gone. Then they wrote a will, and made the trust the beneficiary of their life insurance and other assets. Once Zane turns 18, he will receive state and federal assistance to live, which will continue after his parents are gone. The trust will distribute funds on a discretionary basis, not as income, to avoid state and federal penalties. They are hoping, even with the constant rise of medical costs, that this trust will be able to subsidize what his health insurance will not.
Signorelli continued, “You have to take that time to talk about the unthinkable, the unspeakable, and you have to set up a will to make sure that what you want is what happens, after you pass away.”
“He’s going to have the option of going to college, he’s going to have the option of working in the community and being active and doing whatever makes him happy.” Mikal said.
The Keelers’ are buying a whole life insurance policy on themselves for Zane, helping to avoid the possibility of him running out of money during his lifetime.
The cost of the trust for the Keelers’ was about $500, but if you want to include a special needs life planning seminar, it can get up to $1,500. For people who have a child or a spouse with special needs and can’t afford to hire an attorney or a financial advisor, there is free help available through most community services. And, third parties can also administer trusts, when family members are not available.
For more information please visit: www.themoneytherapist.com
Contributors to this news report include: Don Wall, Field Producer; Mark Montgomery, Videographer; Roque Correa, Editor; Gabriella Battistiol, News Assistant.
