» Inheritance: When a Child Has a Developmental Disability
Home  |  Our Firm  |  Attorneys  |  Staff  |  Blog  |  Contact  |  Employment  |  Directions

Inheritance: When a Child Has a Developmental Disability

June 16th, 2014

As a child with developmental disabilities grows older, parents begin thinking about how to secure their loved one’s financial future as the care they need can be expensive. While government programs and community resources provide essential help, significant family resources are often needed as well. Planning an inheritance for a child with a developmental disability requires special considerations. Here’s why:

A direct gift or bequest may not be appropriate, for two major reasons:

  1. The individual may not be capable of managing significant assets without assistance;
  2. It may be necessary to maintain eligibility for government programs that have income and asset limits

One alternative to a direct gift is making a gift to a family member, such as a sibling, who can  be trusted to use the assets in the best interests of the individual with a disability. However, the family member must be willing and able to take on that responsibility and the gift would then become part of his or her estate, leaving it open to be lost in a divorce or claimed by creditors.

Another alternative is a special needs trust, which can help the individual with special needs maintain eligibility for government programs, while making funds available to enhance his or her quality of life. Creating a special needs trust is a complex task that should be done with the assistance of an estate planning attorney, experienced with special needs issues.


Interested in learning more about Special Needs Trusts? Click on the links below:

Was this article of interest to you? If so, please LIKE our Facebook Page by clicking here.
Share





New York City Office
655 Third Avenue, 20th Floor
New York, New York 10017
(212) 490-2020 Phone
(212) 490-2990 Fax
Westchester Office
399 Knollwood Road
White Plains, New York 10603
(914) 684-2100 Phone
(914) 684-9865 Fax
New York Estate Planning | New York Elder Law | Website by SEO | Law Firm™, an Adviatech Company
This article does not constitute legal advice and should not be relied upon. If you need legal advice concerning this or any other topic please contact our offices to schedule a consultation with one of our attorneys at 914-684-2100 or 212-490-2020.