Special Needs Planning Timeline
What needs to be done now?
- Create/Update a will
- If parents do not have a will, the State of CT Laws of Intestacy (dying without a will), determine the distribution of their assets, which is not in the best interests of the child with Special Needs.
- Establish a Special Needs Trust (SNT)
- Any assets left to the individual with Special Needs must be directed to the SNT in order to protect their eligibility for government benefits.
- Remember the trust does not have to be funded today.
- SNT can also provide protection from predators and creditors.
- Change beneficiaries on existing life insurance and retirement plans to reflect the SNT. These assets do not pass through the Probate System (Will), but rather by beneficiary designation.
- Consider Life/Disability Insurance on parents to protect family and explore 2nd to Die insurance to create a funding mechanism for the SNT…remember, an unfunded/underfunded trust is nothing more than an empty promise.
- Create a Letter of Intent, a blueprint of your child’s life that future caregivers can follow.
- Avoid saving more than $1,600 directly in the child’s name. The child’s social security number should not be associated with the account.
- UGMA/UTMA accounts are not good
- 529 college savings accounts may be problematic
- ABLE accounts are ok, but remember they have Medicaid payback
- Communicate your plan to other family members.
What needs to be done at age 18?
- Apply for Government Benefits
- Social Security (SSI) SSA.Gov, currently $794/month, some families will receive 1/3 reduction if not properly
educated on the process
- Medicaid, potential access to services funded by DDS, DMHAS, Brain Injury etc.
- CFC Community First Choice
- Consider applying for Guardianship/Conservatorship
- If in the DDS system – Guardianship, all others Conservatorship
- Can apply 6 months prior to 18th birthday