An heir with a disability poses unique challenges. A disabled person can lose housing, income, health or other support benefits if the program limits ownership of assets as a condition of eligibility. Therefore, continuity of benefits must be considered when there is a desire to provide an inheritance to a person with special needs.
Unfortunately, we see a lot of clients who have been advised to simply disinherit a disabled child or heir as the simple solution. The intent is that another sibling or relative will take care of the disabled person. This type of planning is disastrous when the person receiving the larger share get sued, divorced or files for bankruptcy. Despite the best of intentions, the asset intended to support the disabled person may not be available when the need arises. For this reason a special needs trust or pooled trust may be set up for the disabled heir’s benefit.
The clients of Oalican Law Group avoid these unnecessary risks because our attorneys understand the eligibility rules for various programs available to disabled persons. As a result of our expertise, our clients execute estate plans which leave assets for person with special needs while simultaneously preserving their public benefits. Contact an attorney today.