Introduction to Special Needs Estate Planning - Part I

Special Needs Estate Planning focuses on the need to provide for the special needs of our loved ones with disabilities when we are no longer there to organize and advocate on their behalf.  It is essential that we start planning now for the coordination of the legal, financial, and care components that will provide for the maintenance of the quality of life and dignity of the beneficiary of the plan.

It is all about maximizing opportunities and minimizing risks.

The four strategic steps we work through in our practice are:

PLANNING - DRAFTING - FUNDING - ADMINISTRATION

Planning - It is important to consider carefully all the factors that affect the individual situation.  It is critical to take the time to design a complete plan that takes into account the beneficiary's unique circumstances, and that fully explores all the options available to address his/her special needs.  This advance planning could include a professional financial assessment, a public benefits profile, a distribution plan and the exploring of housing options.

Planning the future of a child or adult with a disability is an enormous challenge. It requires specialized planning and where possible it is wise to incorporate the help of professionals such as financial planners or accountants, public benefits technicians, care coordinators, and yes, attorneys who specialize in this area.  It is investing in drawing up the plans for the house before we start building.  Remember the old adage, pay a little now (prevention), or pay a lot later (cure).

Drafting - Finding a competent attorney to put together the right documents.  This can be difficult, as many are entering the field, but are not familiar with trust law, and public benefit or disability issues.

Funding - A great plan that is has no funds available is useless.  It is important to determine accurately the financial need balanced against current resources.  Initiating the right strategies now can help to accumulate and preserve funds over the grantor's lifetime.

Administration - This is arguably the most critical step as its 90% of the plan.  This covers the execution of the plan.  The key to successful administration is the distribution plan set out in the Special Needs Trust.  The distribution plan is critical to getting the right people in place with the necessary funds to execute the care plan when you are no longer around to oversee caregivers and hold them accountable.

In Part II, we will discuss some of the important documentation you will need to collect when accomplishing Special Needs Estate Planning.

In Part III we will present the basics of "Trusts" including what is a trust, and the types of trusts to be considered in your planning.

Part IV will talk about the qualifications and experience of the experts you partner with to complete this process.

Part V will be a primer on selecting a trustee to manage your plan.

Part VI lays out a road-map for completing a basic plan.

Part VII will discuss the elements of a complete plan.

As always, feel free to contact our offices at (585) 235-0980 to discuss any questions or comments.  Also, visit our website at www.CiminelliLaw.com