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Old 06-05-2014, 12:08 AM
 
Location: San Antonio
7,629 posts, read 14,384,060 times
Reputation: 18712

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We are blessed with wonderful kids and grandkids, but have one precious little one who has special needs.

At 4 1/2 yrs of age, it is becoming painfully apparent his needs will more than likely be life long requirements.

My husband and I want to ensure that we MAXIMIZE what we have in the way of inheritance for his future needs. Any suggestions where/how to start???

All the other kids understand that his NEEDS come before the"windfall" of those without needs when we pass, and are onboard...but I need to know, is it best to set up things in our will as a trust for him, any way we can minimize taxes and ensure that the money/resources left for his care and needs are "protected" from "processing" costs?

Any suggestion from anyone having dealt with this issue is most appreciated. While he is not eligible for SSI now (too young and parents make over the threshold for income), as he ages out he should become eligible unless a miracle were to occur. (non-verbal, autistic)

Just need to ensure we are doing this "smart" and not cutting him off from services that he might otherwise be eligible for.
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Old 06-05-2014, 01:48 AM
 
Location: Los Angeles area
14,018 posts, read 17,747,361 times
Reputation: 32309
While I'm sure that some posters will come up with good suggestions (I regret that I am not knowledgeable in this area), I suggest consulting with an experienced estate planning attorney. This will cost money, but it will be money well spent in my opinion because you will have confidence that you are doing the right thing(s). The attorney will be familiar with various pitfalls and will know the best ways to accomplish your goals.
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Old 06-05-2014, 06:34 AM
 
Location: Northern panhandle WV
3,007 posts, read 2,174,073 times
Reputation: 6696
I agree, find a GOOD Wills and Trusts attorney, you don't want to go with advice from a forum for this. It will also vary with what state you are in etc.

While you might get some suggestions on here, get the attorney.

Also, if he isn't already on it, you can look into disability for him under parents SS, or even possible SSI.
I have such a grandson and he is one SSI.
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Old 06-05-2014, 03:12 PM
 
4,054 posts, read 2,623,940 times
Reputation: 8787
Agree you need to consult an estate attorney. You might ask about a spendthrift trust for your grandchild. If that's the right solution, the key will be finding a responsible, honest trustee. Good luck.
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Old 06-05-2014, 03:35 PM
 
Location: Los Angeles area
14,018 posts, read 17,747,361 times
Reputation: 32309
Quote:
Originally Posted by arwenmark View Post
I agree, find a GOOD Wills and Trusts attorney, you don't want to go with advice from a forum for this. It will also vary with what state you are in etc.

While you might get some suggestions on here, get the attorney.

Also, if he isn't already on it, you can look into disability for him under parents SS, or even possible SSI.
I have such a grandson and he is one SSI.
What I bolded is such an important point. State laws vary, and we posters reside in potentially all 50 states and even some foreign countries, so our advice would have to be considered general. An attorney in your own state is familiar with your state's laws - another reason to consult one.
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Old 06-05-2014, 04:14 PM
 
Location: San Antonio
7,629 posts, read 14,384,060 times
Reputation: 18712
Oh, I PROMISE we are going to get an estate attorney to help us...just looking for pointers right now. I want to ensure that by providing for him, we are doing so in a "smart fashion" that does not allow the state/fed gov to claim anymore taxes on HIS assets that we have worked so hard for than is MINIMIALLY required by law. Will follow the law to a T, but not X,Y,Z.

ANY and ALL "learned the hard way" lessons sharing MOST appreciated!
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Old 06-05-2014, 04:37 PM
 
Location: Baltimore, MD
3,745 posts, read 4,220,203 times
Reputation: 6866
Your grandchild may eventually need a Special Needs Trust "SNT". Here's a relatively brief summary of an SNT and how it relates to SSI eligibility. Note that it is Federal law, not State law, that will determine whether your grandchild's assets will preclude his eligibility for SSI.

http://www.bazelon.org/LinkClick.asp...w%3D&tabid=129

The linked summary is only provided to help you familiarize yourself with the terminology before your initial appointment with an Estates and Trusts attorney. Let us know how it goes.
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Old 06-05-2014, 04:42 PM
 
Location: Sacramento
13,784 posts, read 23,815,442 times
Reputation: 6195
Quote:
Originally Posted by Paka View Post
We are blessed with wonderful kids and grandkids, but have one precious little one who has special needs.

At 4 1/2 yrs of age, it is becoming painfully apparent his needs will more than likely be life long requirements.

My husband and I want to ensure that we MAXIMIZE what we have in the way of inheritance for his future needs. Any suggestions where/how to start???

All the other kids understand that his NEEDS come before the"windfall" of those without needs when we pass, and are onboard...but I need to know, is it best to set up things in our will as a trust for him, any way we can minimize taxes and ensure that the money/resources left for his care and needs are "protected" from "processing" costs?

Any suggestion from anyone having dealt with this issue is most appreciated. While he is not eligible for SSI now (too young and parents make over the threshold for income), as he ages out he should become eligible unless a miracle were to occur. (non-verbal, autistic)

Just need to ensure we are doing this "smart" and not cutting him off from services that he might otherwise be eligible for.
We have a special needs daughter, so we have had to do quite a bit of research about this issue.

You need to be very careful here, so obviously you need to speak with an attorney because I believe the laws may vary a bit by state.

A trust type of fund will be needed for the special needs child, otherwise the govenment(s) offset their benefits against their allocated savings. You will need to designate another person to be the administrator for this account, specifying that the funds are only to be used for the benefit of the special needs child.
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Old 06-06-2014, 12:52 PM
 
Location: Las Vegas
13,890 posts, read 25,335,938 times
Reputation: 26388
Quote:
Originally Posted by lenora View Post
Your grandchild may eventually need a Special Needs Trust "SNT". Here's a relatively brief summary of an SNT and how it relates to SSI eligibility. Note that it is Federal law, not State law, that will determine whether your grandchild's assets will preclude his eligibility for SSI.

http://www.bazelon.org/LinkClick.asp...w%3D&tabid=129

The linked summary is only provided to help you familiarize yourself with the terminology before your initial appointment with an Estates and Trusts attorney. Let us know how it goes.

^^^This is what you need. I have seen special needs adults lose their SSI upon inheriting from a well meaning relative. Seriously, if you don't do this, the child would probably be better off without an inheritance.
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Old 06-06-2014, 05:24 PM
 
Location: Tennessee at last!
1,886 posts, read 2,042,727 times
Reputation: 3796
I have a special needs adult daughter who was given $100 a month towards her housing expenses. IMMEDIATELY her SS disability was reduced by ---$100 a month exactly.

So we learned that it is much better to have a 'gift' account. So now she can request 'gifts' for just about anything and that has not resulted in a reduction in her SS disability. For example, its Thanksgiving and I am thankful for my electric bill being paid. Or Labor Day celebration, new winter clothes. Gifts do not seem to be off-set by the SS Disability $.

We also are looking at her generation of cousins /siblings for a combination peers of her generation with the right characteristics to assist in giving her gifts after my generation is gone. She could easily be taken advantage of, so finding trustworthy people to manage her/and the $ is important. The $ is in a family trust.
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