Planning for a child’s financial future is an important aspect of creating an effective estate plan, but when planning for a child with special needs, there is much more that must be considered.  A Supplemental Needs Trust (also called a Special Needs Trust) is a specialized legal document designed to benefit an individual who has a disability and, in terms of estate planning, is typically used by parents and grandparents as a tool to provide for a child’s special needs in the future.

When it comes to estate planning, you may only think of a Will, but there are other options that can be utilized to distribute your assets upon your death to your loved ones.  Trusts are estate planning instruments which can be part of your Will or used to replace a Will.  Trusts are designed for very specific purposes and, as such, there are a number of different Trust types to consider.  At The Martin Law Firm, experienced Montgomery County, PA Trust lawyers can discuss Trust options with you to determine which Trust, if any, is right for you and the benefits of having one.  The following are some of the most common Trusts recommended by Trust lawyers in Montgomery County, PA estate planning:

A Revocable Living Trust is a popular Pennsylvania estate planning tool commonly used in place of a Will to determine who will receive a person's property upon death.  A Revocable Living Trust is created for the purposes of holding and investing property and can be changed or revoked during a person's lifetime.  A Revocable Living Trust is beneficial in that it allows for an individual to plan for the future, and unlike a Will, a Revocable Living Trust will avoid the need for probate.

In part one of this post, I described the startling prevalence of autism and autism spectrum disorders (ASD) across Montgomery County and the rest of Pennsylvania.  The PA Bureau of Autism Services has concluded that the number of adults with autism in Pennsylvania will spike dramatically within the next couple of years.  There are thousands of children with autism in PA who will transition into adulthood in the very near future, and these adults will most likely require some level of support throughout their lives.  

Since the 1970s, the U.S. has recognized April as National Autism Awareness Month in to highlight the growing need for concern and awareness about the disorder.  This post is part 1 of a 2-part series. 

One of the most useful tools for purposes of Pennsylvania estate planning is life insurance.  Life insurance is a valuable estate planning tool because it can provide immediate liquidity to an estate.  Many of my clients in Blue Bell, Lansdale, Norristown, Fort Washington, and the rest of Montgomery County, PA are surprised to learn this.  In fact, many of my clients are not even aware of the possibility of including life insurance as part of their estate.

Planning for Care of a Special Needs Child with a Special Needs Trust / Supplemental Needs Trust

What is a trust?

No one likes to think about one’s own death.  However, planning ahead can help your family avoid unnecessary complications, delay and expense.  This may be done through wills, trusts, joint ownership and life insurance.  In addition, modern estate planning also includes “life” planning through powers of attorney and health care proxies.  These enable someone else to act for you in the event of your incapacity.  Understanding the following terms is the first step toward planning your estate.  However, no estate planning steps should be taken without consulting with a qualified professional.

A “Disclaimer Will“, sometimes referred to as a “Disclaimer Trust“, is a flexible estate planning tool that can be implemented to benefit married couples whose combined estates are approaching or exceed the lifetime exemption amount for federal estate tax, resulting in substantial tax savings to the estate of the surviving spouse.  Currently, the exemption amount for 2009 is $3.5 million, and in 2011, the exemption amount will be $1 million.  (There is currently no federal estate tax in 2010.)  This estate planning tool can effectively double the exemption amount by preserving the first to die spouse’s exemption through use of a trust.