Providing For A Child With Autism By Andrew M. Cohen, Esq.
For many families that include a child with autism, the questions concerning who will take care of the child in the future and where the money to support that child will come from are daunting thoughts. Some parents choose to postpone planning rather than deal with the difficult reality that faces them; however, early, careful planning can secure a disabled individual’s future long after his or her parents have passed away.
Parents and grandparents who continually put money and other property in the child’s name, even as part of jointly held accounts, could be doing a disservice to that child. A disabled individual is actually precluded from receiving means based government entitlements, such as Medicaid and Supplemental Security Income (SSI), when assets held in that person’s name exceed a specified amount. By contrast, completely disinheriting the child and relying solely on the government is not necessary and hardly qualifies as sound planning. Smart, proper planning is best achieved by creating a scenario that includes full eligibility for the government assistance, as well as whatever private resources the family can leave to provide a more comfortable future for their family member. This best of both worlds approach is accomplished with a Supplemental Needs Trust.
The Supplemental or Special Needs Trust is often referred to as the cornerstone in formulating a plan to care for a child with disabilities. It is typically established as part of a comprehensive estate plan and funded with an inheritance and/or life insurance products, such as a second-to-die policy. If drafted correctly, the assets that fund a trust will provide the “extras” for a beneficiary (the disabled individual) without affecting or disqualifying the beneficiary from those important government programs. The child retains the right to receive these means based benefits because this type of trust is not considered a countable resource by the government. Once the trust is established, it’s usually managed by a person known as a Trustee, generally someone similar in age to the disabled individual; there are also organizations and institutions that provide trustee services. It should be noted that when a trust is funded with money or assets of the beneficiary, such as a recovery from a lawsuit or a gift/inheritance directly to the disabled individual from another family member, payback rules apply with regard to the government benefits received by a disabled individual over the course of his or her lifetime.
When properly created, a Supplemental Needs Trust provides a comfortable and secure future for the individual with autism, enhancing the quality of his or her life by providing funding for the “luxuries” in life not supplied by the government, while not affecting that person’s rights to receive government benefits.
Andrew M. Cohen, Esq. is the principal of the Law Office of Andrew M. Cohen PC. The firm concentrates in the areas of Trusts & Estates, Guardianships, Elder Law and Estate Planning, with an emphasis on planning for special needs families and disabled persons. Mr. Cohen has a Juris Doctorate and an L.L.M. in Taxation. The firm’s offices are located in Garden City and Manhattan and can be reached at 516-853-2171 or through the website.