Planning for the future care of a loved one with special needs involves a range of considerations that can be overwhelming for families. Whether you’re concerned about their financial well-being or legal guardianship, special needs planning helps safeguard your family member’s future.
At Charlotte Estate Planning, our special needs trust attorneys can create detailed plans to provide for your loved one’s long-term needs while avoiding pitfalls that could affect their eligibility for benefits.
Contact us or call 704-766-8836 today for a consultation.
What Is Special Needs Planning, and Why Is it Important?
The primary goal of special needs planning is to ensure that your loved one receives the care and support they require, even after you’re no longer able to provide it directly. This involves careful management of assets and legal decisions that protect their interests while preserving their access to government benefits such as Supplemental Security Income (SSI) and Medicaid.
Without proper planning, a financial gift or inheritance could unintentionally disqualify your family member from essential government programs.
How Do Special Needs Trusts Work in North Carolina?
A key tool in legal planning for special needs individuals is the establishment of a special needs trust (SNT). A special needs trust allows you to set aside financial resources for your loved one without those assets being counted against them when determining their eligibility for government assistance programs.
By working with a special needs trust attorney, you can ensure that the trust is properly set up and administered to meet your loved one’s needs while keeping them eligible for public benefits. There are three main types of special needs trusts:
First-Party Special Needs Trust
Funded by the individual’s own assets, such as through an inheritance or personal injury settlement. This trust allows your loved one to access their own funds while still qualifying for public benefits.
Third-Party Special Needs Trust
Created and funded by someone other than the individual, such as a parent or grandparent. This trust is often used as part of estate planning to ensure financial support after the caregiver’s passing.
Pooled Special Needs Trust
Managed by nonprofit organizations, pooled trusts combine the assets of many beneficiaries but keep each individual’s account separate. This is often a good option for those who do not have a large amount of funds to place in trust.
By working with a special needs trust attorney, you can ensure that the trust is properly set up and administered to meet your loved one’s needs while keeping them eligible for public benefits. Speak to an attorney to learn more about this crucial aspect of special needs planning.
How to Plan to Preserve Public Benefits Eligibility in North Carolina
Programs like SSI and Medicaid have strict asset limits, meaning that individuals can be disqualified if they have more than a defined dollar amount in countable assets. Establishing a special needs trust allows you to provide financial support for your family member without disqualifying them from these benefits.
The funds in the trust can be used for a variety of expenses that enhance your loved one’s quality of life, such as:
- Medical treatments and therapies not covered by insurance
- Educational programs and vocational training
- Personal care services and assistive technology
- Recreational activities and travel
By working with an experienced special needs planning lawyer in Charlotte, you can ensure that your loved one’s needs are met without jeopardizing their access to government programs.
Other Considerations for Long-Term Special Needs Care in North Carolina
Beyond setting up a special needs trust, comprehensive planning involves addressing other key aspects of your loved one’s long-term well-being.
Letters of Intent
This non-legally binding document can provide future caregivers with detailed instructions on your loved one’s preferences, daily routines, medical needs, and more. While it’s not legally enforceable, it serves as a critical guide for those who may need to step in as caregivers.
Life Insurance
A life insurance policy can ensure that there is ongoing financial support for your loved one in the event of your passing. By designating the special needs trust as the beneficiary, the funds can be used for your child’s care without affecting their benefit eligibility.
Health Care Directives
Advance medical directives or health care powers of attorney ensure that medical decisions are made in line with your loved one’s best interests. This can be an important part of ensuring their well-being if they are unable to make decisions on their own.
Guardianship and Decision-Making
When your child with special needs reaches adulthood, they may still require assistance with managing their affairs. North Carolina law encourages the least restrictive form of guardianship possible, allowing individuals to retain control over certain aspects of their lives while receiving help with others.
Guardianship is an important element of planning for your loved one’s future. Depending on their capabilities, they may need assistance with decisions regarding healthcare, finances, or personal living arrangements. Limited guardianship can offer protection while allowing your family member a degree of independence, whereas full guardianship provides more comprehensive oversight.
We assist families in determining the best form of guardianship or alternative legal arrangements, such as power of attorney, to ensure that your loved one’s personal and financial affairs are properly managed.
Contact Charlotte Estate Planning Today for Help with Special Needs in NC
Every family’s situation is unique, and at Charlotte Estate Planning, we provide individualized guidance to create a plan that best meets your needs. Whether you’re starting to think about trusts for special needs children in Charlotte or need advice on guardianship and financial management, we’re here to help.
Our attorneys have extensive experience with legal planning for special needs, offering compassionate support and practical solutions to give you peace of mind. We work closely with you to ensure that all legal and financial tools are properly structured, so that your loved one is protected now and in the future.
Contact us or call 704-766-8836 to start planning today.
