There are a number of mistakes that parents of special needs children often make when doing their estate planning.
These mistakes can have long-term negative consequences for the child, says a story on finance.yahoo.com.
They include:
- Not properly funding and maintaining the plan. For such a child it is imperative that sufficient assets be available for that person throughout his or her lifetime. This may need permanent life insurance. The beneficiary can be the child’s special needs t4ust.
- Choosing the wrong trustee. It is usually a bad idea to designate a family member or friend as the trustee since they aren’t experts on this kind of trust.
- Failing to ask for contributions to the trust. Friends and family can make gifts to the trust while they are alive or at the time of their deaths.
- Relying on a sibling to use their own money to care for a special needs brother or sister. The sibling may not have the means to do this or may not want to do it.
http://finance.yahoo.com/news/6-planning-mistakes-avoid-special-110000937.html
If you have questions about estate planning, feel free to contact us for a consultation at (626) 696-3145.
