The estate planning process can seem a little tricky when you have a special needs child to consider. While they might be highly functional, the fact of the matter is that they will require additional support. Whether it’s to pay for professional services or to ensure a continued income, you have to take certain steps in order to provide for their well-being. Here’s a closer look to make it easier to prepare. 

What to Include in the Estate Plan for a Special Needs Child

1. Financial Power of Attorney

A financial power of attorney is someone you designate to handle the monetary aspects of the estate. They can have the authority to utilize assets for the benefit of a special needs child and help them to maintain a quality state of life.

Select someone you trust. They should also be good with their finances and have no vested interest in the estate. This will reduce the risk of loss and provide the support your child requires. 

2. Trust

Another option is to set up a trust. This separates the amount from the estate and keeps it from going through the probate process. Investments will be made to ensure that it continues to grow. 

A first-party trust is when the money is given directly to the beneficiary. A third-party special needs trust is an account that holds funds specifically for the child’s needs as they become an adult. 

A pooled trust is when the amounts for multiple beneficiaries are kept in a single account. One will have charge over the special needs portion and will release what they deem is necessary. 

3. Guardianship

If your child is unable to live on their own, then assigning guardianship is an important part of the estate planning process. This gives a family member the legal right to raise them as their own. The only issue is that this only lasts until they're 18 years of age. 

Those who are adults and still unable to fend for themselves might have to come under a conservatorship. It grants a family member or unbiased third party the authority to handle their assets. From paying monthly bills to spending on fun activities, each withdrawal will have to go through an approval process to prevent them from spending it all in one place.

If you’re at the start of the estate planning process, reach out to Lance S. Cox, Attorney at Law. Located in Cincinnati, OH, this lawyer has more than 30 years of experience and is well-versed in the intricacies of probate law. He commits to upholding the rights of his clients and will make sure that the proper documents are on file. Call (513) 528-6000 to schedule a consultation or visit his website for additional information on his services.