April is Autism Awareness Month - PA Estate Planning for Parents of Special Needs Children
Posted by Jason Martin, Esq. on Tue, Apr 19, 2011
Since the 1970s, the United States has recognized April as National Autism Awareness Month in an effort to highlight the growing need for concern and awareness about autism. The statistics regarding autism are staggering. Today, 1 in every 110 children is diagnosed with autism. The prevalence of autism increased 57% from 2002 to 2006, and this rate continues to increase (citing www.autism-society.com).
Despite the high prevalence of autism in today’s world, many parents of special needs children remain unenlightened with regard to the particular steps necessary to ensure that their child is physically and financially cared for. Creating and implementing a well thought out and properly drafted estate plan is important for any parent, but for a parent of a child with special needs, it is absolutely essential.
The term “special needs” includes autism spectrum disorders as well as a wide variety of psychological, social and emotional disorders. A special needs child is often entitled to government benefits, including Medicaid and Supplemental Security Income. These benefit programs are largely needs based, which means that benefits are available only to those whose income falls below a certain level. As a result, leaving a direct inheritance to a special needs child can actually disqualify the child for government benefits. Upon the child’s receipt of the inheritance, the government benefits will immediately cease, and the child will be forced to pay for 100% of his or her own medical care, room and board until his or her assets have been spent down to zero. The child will re-qualify for government assistance only once he or she has completely exhausted his or her own personal assets.
Luckily, there exists an estate planning mechanism purposefully created by the United States government to circumvent this predicament. A Special Needs Trust, or Supplemental Needs Trust, is a trust designed to hold assets for the benefit of a person with disabilities or special needs. Assets placed into a properly drafted Special Needs Trust/Supplemental Needs Trust are not counted for purposes of determining eligibility for government benefit programs, so the beneficiary can retain eligibility for programs like Medicaid and SSI and still have funds available from the trust to provide for the beneficiary’s supplemental needs.
A Special Needs Trust or Supplemental Needs Trust should only be prepared by an experienced estate planning attorney. The Martin Law Firm is an experienced Pennsylvania estate planning law firm that regularly assists clients with the development and implementation of Special Needs Trusts. Visit our Special Needs Trust/Supplemental Needs Trust home page. For a free consultation with an experienced PA estate planning attorney, contact the Martin Law Firm today.
Jason Martin, Esq. is an experienced PA estate planning attorney serving residents of Norristown, Lansdale, Blue Bell, King of Prussia and the rest of Montgomery County. The Martin Law Firm, located in Blue Bell, PA, also regularly assists personal representatives and executors with the Pennsylvania probate process and other estate administration matters. Contact The Martin Law Firm today for a free consultation.