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Comprehensiv e Estate Planning fo r Individual s with Specia l Needs

Comprehensiv e Estate Planning fo r Individual s with Specia l Needs. James J. Mullen, Esquire (401 ) 474-1571 jjmullenlaw@cox.net. Special Needs T r ust. Protects eligibilit y fo r governmen t benefits Provides for a higher quality of life

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Comprehensiv e Estate Planning fo r Individual s with Specia l Needs

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  1. ComprehensiveEstate PlanningforIndividualswith SpecialNeeds JamesJ.Mullen,Esquire (401)474-1571 jjmullenlaw@cox.net

  2. SpecialNeedsTrust • Protectseligibilityforgovernmentbenefits • Providesfor ahigherqualityoflife • Providesframeworkforcareandmanagementof assets • Allowstheparenttoexpresstheirdesires • Protectsassetsfromcreditorsandpredators • Extendslifeof assets

  3. SpecialNeedsTrust • Avoidsmanyofthecostlymistakespeoplemake whenplanningfor theirchildwithspecialneeds,such as: • Disinheritingthechild • Relyingonyourotherchildrentoprovide thechildwithspecialneeds • Failingtoprovideprivacyforthechildw specialneeds • Choosingthewrongprofessionals for ith

  4. DisinheritingtheChild • Somerecommendtoparentstodisinheritthechild withspecialneedsinordertoprotecttheirpublic benefit. • Publicbenefitsprovideminimallevelsofhelp • Yourspecialneedschilddependsonyoumore thanyourotherchildren • Thisisshortsightedplanning

  5. RelianceonSiblings • Whilethismaybeaworkabletemporarysolution,for thelongtermthereareseriousdrawbacks • Siblingsmaynothavethefinancialresources • Siblingsmaynothaveemotionalresources • Whatifsiblinggetsdivorced,orhasothercreditor problems? Theassetsyouintendedforyourchildwillgo toacreditororex-spouse. • Whatifsiblingdiesorbecomesincapacitated?

  6. PrivacyConcerns • Theprobateprocessispublic.Predatorsmaylearnof yourchild’sinheritanceandseektoseparatethem fromtheirassets.

  7. ChoosingtheWrongProfessionals • Attorneyswhoarenotexperiencedinthisareacando moreharmthangood • FinancialAdvisorswithexperiencecanhelp maximizeyourresourcestobenefityourchild

  8. SpecialNeedsTrust • ThreekindsofSNTs • SelfsettledSNT • ThirdPartySNT • PooledSNT

  9. ThirdPartySNT • MaybeestablishedbyWillorduringlife • IfestablishedbyWill: • Timeconsumingdelay • Additionalprobateexpenses • What if theWill isnot probated? • What if laws change? • Ifestablishedintervivos: • In effect immediately • Trustees,andsuccessorsget trainingandexperience • Canbebeneficiaryof lifeinsurance • Grandparentscanleaveaninheritancetothetrust • Iflawschange,trustcanbeamended

  10. ThirdPartySNT • Thetrustshouldreflectyourchild’suniqueness • Generictrustscanleavethetrusteewithlittle guidanceonhowtoprovidelifeenhancingbenefits for yourchild • Thetrustshouldreflectyourknowledgeand insightintoyourchild

  11. ThirdPartySNT • Thetrusteeshouldgetexperience managingthetrust • Teachothers,howtomanaget • Workoutkinksintheplan • Putateaminplacetomeetyo uniqueneeds • Theplanisinplaceifyoubecome incapacitated hetrust urchild’s

  12. HowdoIChooseaTrustee? • Initially,chooseyourselfand/oryourspouse • Next,choosewhoyouthinkwill • Carefor your child • Iswillingandabletodevotethetimeandenergy • Hastheabilitytomanagetheassetsproperly • Is willingto learn • Iswillingtoseekadvice • Is someoneyou trust

  13. HowdoIchooseaTrustee? • ProfessionalTrustees • Arenotasattachedtoyourchild • Maybelessresponsive • Are bondedor insured • Aremorelikelytoproperlymanagethetrust • Provideexcellentrecordkeeping • Chargefor theirservices(alltrusteesshouldbe compensated)

  14. HowdoIchooseaTrustee • Considerselectinganindividualandaprofessionalto serveasco-trustees • Together,theybalanceeachother

  15. NextSteps • Decidethatyouaregoingtogetseriousaboutestate planning • Recognizethatplanningisanexpressionofloveand devotiontoyourspouse,children,andthecausesyou support

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