With the age of information comes a lot of disinformation. Having information at our fingertips can be a good thing, but being able to understand and apply the information is equally important.

A common problem with trying to put your estate plan together yourself is failing to properly plan for a loved one with special needs. Individuals with disabilities who are on income- or asset-based programs can be significantly impacted by an unexpected windfall should you name such an individual as a beneficiary on a retirement account, a Transfer on Death Deed, or a checking account. The sudden influx of assets could jeopardize the person’s eligibility for essential benefits that they rely on to cover the services and supports they need. It could even impact their monthly income if they are on Supplemental Security Income (SSI).

A common scenario we see is families trying to add their children as joint owners on their checking accounts to try to avoid probate. Unfortunately, if you put your child who is receiving Medical Assistance or SSI on your checking account, this could impact their eligibility for assistance, as the assets in that account could end up counting as an available asset since their social security number is tied to it. There are better ways to avoid probate. Knowledgeable estate planning and elder law professionals can help you put in place a plan to still provide for your loved ones with special needs while trying to avoid probate and/or reducing the chance of jeopardizing their eligibility for the benefits they need to survive. There are multiple tools that can be used based upon the family situation and the individual’s needs and resources.

At Henningson & Snoxell, Ltd., our estate planning department has attorneys with the experience and knowledge to help you navigate the complicated waters when you have a loved one with special needs. From incapacity planning to estate planning and beyond, we can help you put the plan and tools in place for peace of mind.

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