Posts

Special Needs Trust Funding

Special Needs Trust Funding

/in /by

Funding a special needs trust (SNT) properly ensures your assets get exactly where they need to be. The trustee can then distribute these assets to benefit your disabled loved one.

Before any special needs trust funding can happen, you must choose the type of trust that best suits the situation for your special needs child or adult. Retaining a special needs attorney is critical to carefully select a first- or third-party SNT based on maximizing available government program benefits and assessing future tax implications.

Establishing the Trust as a Legal Entity

In some instances, the first step to funding a special needs trust is establishing a taxpayer ID number from the IRS. Once set up, the trust is irrevocable. An exception to the EIN requirement is establishing a living trust and will, which becomes irrevocable upon the trust creator’s death requiring an EIN later. This nine-digit Employer Identification Number (EIN) acts like a social security number for the trust so that the IRS can identify the trust as a separate legal entity.

Funding the Trust

Funding options for a special needs trust are unique to each family situation. Money from a personal injury settlement can fund a first-party SNT trust (if you are under 65 years old), and any inheritance the beneficiary receives directly. However, upon the death of the disabled individual, these trusts have pay-back provisions for Medicaid.

A third-party special needs trust is written either during the creator’s lifetime (inter vivos) or as a testamentary trust accessed upon the creator’s death. An inter vivos trust allows other family members or friends to contribute to the trust before the trust creator’s death. Typically, third-party SNT funding includes inheritances, family savings, and other financial gifts, which can be invested in stocks or bonds for growth and to hedge against inflation. The trust can be self-sustaining with the proper investment decisions.

A family creating a special needs third-party trust may also consider funding through:

Insurance

  • Survivorship or second-to-die life insurance policies can be a good funding choice as they tend to have less expensive premiums; however, they will not pay out until the second member of a couple dies. Domestic partners may also purchase coverage as you do not have to be legally married to buy a policy. Problems may occur if the remaining spouse or partner does not have enough cash flow to cover the family’s ongoing expenses from other sources. A survivorship insurance policy requires a close look at your retirement planning and other income sources, as well as funding a special needs trust.
  • Term life insurance is often another relatively inexpensive funding choice for a special needs trust. Term life insurance policies guarantee payouts during a specified period and typically cost less. You can renew these policies upon their expiration date, assuming you are not subject to significant health changes. Renewing term life insurance often means higher premiums as you age and if you encounter notable health changes.
  • Whole life insurance will cover your entire life span. The premiums you pay collect in an investment account that the insurance company invests to grow value. These premium costs are fixed.
  • Variable life insurance will also provide lifelong coverage; however, the policy cash value will fluctuate along with financial markets.

Real Estate

For a person with special needs, a family home may represent stability and routine, and living in that residence may be an important goal for continuity. Yet leaving the house in the name of your special needs loved one is often a big mistake as it affects means-tested government benefits. However, real estate in a third-party SNT can avert the Medicaid lien of a first-party trust upon their death and transfer to other beneficiaries instead.

If the special needs individual needs to move and sell the home, the sale proceeds will remain in the trust. If moving is not contingent upon selling the home, the SNT trustee can convert the property to a rental, producing income for the trust. In either case, it is important to have adequate trust funds to maintain a family home in the SNT.

Retirement Plans

Funding an SNT through retirement plans is complex. Without careful financial management, all the funds distributed to the trust’s beneficiary may be taxed during the transfer year. This situation may result in eligibility disqualification for government benefits and unnecessarily high taxes.

An exception is designating military survivor benefits to a special needs trust recently adopted through the Disabled Military Child Protection Act federal legislation. But, if your special needs trust receives funding from non-military retirement accounts, the SNT format should be an “accumulation trust,” which spaces out required minimum distributions. Additionally, any remainder beneficiaries (those entitled to remaining funds upon the death of the primary beneficiary) should ideally be younger than the primary beneficiary to avoid unintended distribution requirements.

Retirement accounts can negatively affect the intent of a special needs trust. Instead, many special needs attorneys or disability lawyers encourage draw downs on the retirement account to purchase life insurance for the SNT or leave their retirement funds to other heirs.

Getting Professional Advice

All funding options for a special needs trust require complicated decision-making. Before creating and funding an SNT, families should consult an attorney specializing in financial planning and special needs law. Understanding tax regulations, insurance options, and benefits laws are crucial to creating a trust that addresses the family’s goals for the future security of their loved one. Proactive planning with a special needs attorney can protect your loved one’s government benefits and provide additional assets through a properly funded special needs trust. For assistance, please contact our Ruston, LA office by calling us at (318) 255-1760.

There is No Need to Disinherit Your Special Needs Child for Benefit Protection

Special Needs Child for Benefit Protection

/in /by

The futures of children with special needs are at risk because of the unique challenges and opportunities they face. There is no need to disinherit your special needs child for benefit protection. Appropriate medical, educational, recreational, and employment opportunities for your special needs child can result in a lifetime of pursuing public and private programs and services. Too often, the parents or persons responsible for financial and medical management of the special needs child receive misguided advice to disinherit them.

Who Qualifies as Special Needs?

The term “special needs” refers to the clinical and functional development of individuals requiring assistance for medical, psychological, or mental disabilities. For government benefits programs, special needs are a part of the larger category of disability. Special needs diagnoses are considered disabilities, but not all disabilities are special needs. Maintaining your child’s qualification for government disability benefits can be done through estate planning strategies. You do not necessarily need to disinherit your special needs child to preserve them.

How Does Inheritance Affect Government Benefits?

Directing assets to the child can result in their inheritable assets and income levels exceeding allowable levels, making them ineligible for public assistance. This problem can make parents decide not to provide the same level of inheritance as they would for other children. It is a painful decision to make. However, There is no need to disinherit your special needs child for benefit protection. Other methods exist to provide inheritance and protect government benefits with careful planning.

Estate Planning Solutions

The proper creation of a special needs or supplemental needs trust can help the child without jeopardizing eligibility requirements for government disability benefits. Public benefits have specific spending designations that cover shelter, food, clothing, and transportation. The monies from a special needs trust are designed to improve the child’s overall quality of life but are spendable only in certain categories.

The trust money can’t be used for housing, food expenditures, or other financial needs that government benefits meet. Instead, it is used to pay caretakers, out-of-pocket medical expenses, some transportation, educational expenses, recreation, vacations, and more. There is no need to disinherit your special needs child for benefit protection. A disability planning attorney can design your special needs trust to comply with the specific rules of the beneficiary’s public benefits program.

How Does a Trust Work?

Determining how to fund a special needs trust depends on your financial situation. Life insurance policies are a popular choice, as are income-producing assets that increase the trust’s future bottom line. How much to fund the trust also depends on your financial situation. A broad list of your special needs child’s expenses to consider include:

  • Housing
  • Medical care
  • Care assistance
  • Special equipment
  • Education and or employment costs
  • Personal needs
  • Future asset replacement costs like a car, furnishings, etc.

Some of these broader expense categories will fall to government benefits spending and others to the special needs trust. To avoid providing monies for categories that can affect eligibility for government benefits like SSI and Medicaid, do not pay for the following expenses with special needs trust funds:

  • Rent or mortgage payments
  • Essential food and groceries (the occasional restaurant outing is permissible)
  • Direct gifts of cash to the beneficiary for any purpose
  • Property taxes
  • Condo or homeowner association dues
  • Mortgage required homeowner’s insurance
  • Utilities and other hook-up or connection charges

Who Owns or Controls the Trust

Often, the parents choose to be the trustee(s) of the special needs trust until they become incapacitated or pass away. An alternate or backup trustee with expertise in managing trusts who can pay bills and taxes, keep accounts, and make sound investments is crucial to designate. The parents may also choose to designate a professional trustee for the same purpose.

Sometimes, to alleviate any discomfort with an outsider managing their child’s needs, the parents opt for a professional and family member as co-trustees. A trustee can also hire a trust protector who is given the legal power to review accounts and fire and hire trustees, or a trust advisor who will inform the trustee of the beneficiary’s needs. A special needs planning lawyer can help you to assess if these additional oversights are necessary.

Parents and other decision-making individuals using a special needs trust have the means to treat their special needs child similarly to other children. While different types of trusts are unique to protect government disability benefits, the child will be able to inherit as a trust beneficiary. Once the special needs trust has served its purpose, any remaining assets can be divided among surviving family members. Even fund the organizations instrumental in the special needs child’s care.

If you prefer, you can designate a charity to receive the remaining principle as a form of legacy gift, perpetuating your child’s memory. A disability or estate planning attorney knows how to create a special trust to meet your child’s needs and financial goals while protecting your child’s government benefits. There is no need to disinherit your special needs child for benefit protection. For assistance, please contact our Ruston, LA office by calling us at (318) 255-1760.

Understanding Special Needs Planning

/in , /by

Enabling the Disabled

We help families look at planning for their disabled loved ones to live their best lives. Family money can be carefully managed to fit the disability-benefit rules and still provide additional perks for the disabled person to enjoy. And, though the rules can be strict, disabled people are still permitted autonomy to own some money for their personal use and yet retain their valuable benefits.

For the disabled who have formerly worked

People in this category have contributed Social Security deductions while employed, but they can’t work now due to disability. These people can get benefits of around $1,000.00 monthly, and Medicare coverage, under the Social Security Disability Income program (SSDI). This program permits the disabled to receive income from any source and still get benefits, as long as that income is not earned from employment but, for example, from investments or inheritances.

If there is a family-member in this position, and if there are other elder family-members who are concerned about qualifying themselves for long-term care Medicaid benefits, the elders’ funds can be funneled into an irrevocable trust to benefit the SSDI recipient. There is no penalty against the elder for that kind of gift, even if the elder makes it during the five-year Medicaid look-back period. This strategy can preserve many thousands of family dollars.

For the disabled who are impoverished

The program for people in this category is called Supplemental Security Income (SSI). The purpose behind this program is to provide for people’s basic needs like food, shelter, and medical care. SSI pays an average of around $800.00 monthly plus Medicaid coverage and Section 8 housing assistance. These benefits are available for people who are disabled, who have not worked and have not contributed to the Social Security system, and who own no more than around $2,000.00.

Financial planning under SSI must be done carefully to preserve these benefits, but they are worth the trouble; the medical benefits are especially valuable. The SSI rules are fairly complicated. Gifts of the “wrong” kind – even simply stocking a disabled family-member’s freezer – could cause benefits to be reduced or lost.

Young people who became disabled before they turned 22 may be eligible for another  program, comparable to SSI, the Childhood Disability Benefits program. The rules under this program resemble SSI rules, but with additional wrinkles to do with the parents’ Social Security status.

What a difference one letter makes

It is essential to know which program the disabled person is under. SSDI recipients enjoy freedom to inherit or receive (but not to earn) money. SSI recipients do not enjoy that freedom. The addition of one letter in the acronym – a “D” – makes a big difference.

Trusts for the disabled

Trusts aren’t just for the rich. For disabled people, trusts are essential to shelter money for their benefit. Think of a trust like a treasure chest. The original owner stocks the chest with money and property. The assets are then managed according to trust instructions. For the disabled, those instructions detail how the money is to be spent, to ensure that the disabled person’s benefits aren’t jeopardized.

If money is left in a will, the will must also create a trust suited to retaining disability benefits. The days are long past when a two-page will would do the job.

Party of the first part, the third part, or everybody into the pool

You may remember that scene from the movie Night at the Opera, where Groucho and Chico tear out hunks of a contract identifying the parties. In the disability context, though, there’s an important difference between a first-party trust and a third-party trust.

Let’s say Sally became disabled before she was able to work. She sued an insurance company to compensate her for her injuries. She has been waiting years for the settlement to come in. In the meantime, she is disabled from working, she ran out of resources on which to live, and, thus, she qualified for SSI benefits. Now the settlement has finally arrived – but she still wants to protect her SSI benefits, especially for medical costs. Accepting the settlement money directly could put an end to those benefits.

Sally should put her settlement into a “first-party” trust. This kind of trust must provide that whatever money is left in the trust after Sally dies be paid back to the government for what it paid on Sally’s behalf. If Sally’s trust is set up like that, she will continue to receive SSI.

(There is a host of names for this kind of trust, including “self-settled” or “d4a or d4c” or “payback trust” or “special needs trust” or “supplemental needs trust” or “SNT.” All these monikers refer to the same “first-party” idea.)

Now let’s say that Sally didn’t sue, but her generous grandfather wants to give her money. Grandfather’s lawyer stops him from giving Sally money straightaway in a lump sum, because that would lose Sally her SSI benefits. Instead, the lawyer puts grandfather’s money into a “third-party” trust for Sally’s benefit. (Grandfather is a third party.) Third-party trusts contain highly specific conditions under which money can be paid to Sally, only for perks that are above and beyond Sally’s basic needs that SSI pays for.

If, on the other hand, the disabled beneficiary is over age 65, a “pooled” trust can also be created, with either “first-party” or “third-party” funds. The trust pays out, and is managed, by a nonprofit organization that is knowledgeable about the disability rules and that aggregates smaller trust assets into a larger fund. This kind of “pooled” trust – similar to the “first-party” trust described above – must also contain provisions to pay back the government and the nonprofit after the disabled beneficiary dies.

A bank account of one’s own

Disabled people are also permitted to keep their benefits plus their own bank account, known as an “ABLE” account (“Achieving a Better Life Experience”). In an account like this, the disabled can deposit and spend around $12,000.00 or more annually, depending on state law, up to around $100,000.00 total deposits. The general idea is that even SSI benefits can be retained and ABLE money can still be spent on anything that legitimately improves or maintains a disabled person’s health, independence, or quality of life.

The basic premise

So, while the rules hedging disability benefits can be complicated, the basic premise is this: that the disabled may stay well, enjoy themselves, and participate as integral members of community life.

Contact our Ruston, LA office by calling us at (318) 255-1760 or schedule an appointment to discuss how we can help you plan for your disabled loved one.

Helpful Estate Planning Tips When You Have a Child With Special Needs

/in /by

With today’s medicine and health care advancements, children with disabilities can live more productive lives than ever before. Many scientists regard the term special needs as a euphemism for disability. Yet, the difference between the two terms is primarily one of acceptance and preference as both terms describe the four major types of disability: physical, developmental, sensory impaired, and behavioral/emotional.

When you have a child with special needs, it is crucial to plan their future with the utmost care as they will meet additional challenges to care for themselves and their lives. According to the US Census Bureau, between the years 2008 to 2019, the biggest increase in special needs was the experience of cognitive difficulty, which saw a large jump in prevalence.

Careful estate planning for parents with children of special needs is necessary to ensure government benefit access remains without foregoing family support. Below are some basic planning tips to consider to protect your child with special needs. If you would like to explore these options in more detail, please give us a call to set up a confidential meeting.

While your child is a minor, be sure you and anyone caring for your child has signed appropriate directives that specify who should care for your child in the event you are unable to. You may also consider preparing legal documents that name a guardian for your child, again if you are unable to care for your child or in the event of your death.

Once your child is an adult and has the legal capacity to sign documents, that child should have their own set of advance directives naming a trusted agent.

There are several types of special needs trusts. A First Party Special Needs Trust receives its funding from the special needs person as long as they are under 65. The funding mechanisms may be lawsuit proceeds, inheritance, or lump sum disability benefits. This trust can be established by the special needs child, parent, grandparent, or guardian and, when drafted properly, will not affect eligibility for the special needs person’s government benefits.

A Third Party Special Needs Trust permits family members to use their assets to fund a trust to benefit a person with special needs without negatively impacting that person’s eligibility for government benefits. The funds in this trust type do not have a payback provision, allowing any remaining assets to pass to other beneficiaries as designated by the trustmaker and can be created during a lifetime or under the instructions of a will.

Finally, a Pooled Trust is a community trust that a non-profit organization manages to fund the needs of many special needs beneficiaries. In essence, the non-profit acts as a trustee and can be a good option for small families or those who seek non-family member trustees. The property held by pooled trust for the beneficiary should not affect eligibility for government benefits.

If you have a life insurance policy or are considering one, you can make the proceeds payable to your third party special needs trust. Leaving permanent and term life insurance policies to this trust type will not affect the child’s government benefits. If you have retirement accounts, those may be payable to the third party special needs trust as well if there is a balance at the end of the account holder’s life.

It is not advisable to leave property for the care of your special needs child to a third party, such as another child. This third-party designate has no legal obligation to follow your wishes, leaving the use of your money to the discretion of that third party. As this type of arrangement is not legally enforceable, your child with special needs will be wholly unprotected after you die.

Create an Achieving a Better Life Experience or ABLE account. This type of account is not unlike the idea of the 529 College Savings Plan. An individual experiencing their disability before 26 years old can deposit up to $15,000 per year into their ABLE account. The account grows tax-free and can pay qualified expenses to maintain or improve quality of life. An ABLE account can also receive funds from parents, other family members, or friends who want to contribute to the account. Most government benefit programs are not affected by ABLE account funds.

There are many intricacies to consider when creating an estate plan that involves a special needs child. We welcome the opportunity to speak to you about your estate planning needs.

Please contact our Ruston, LA office by calling us at (318) 255-1760 or schedule an appointment to discuss how we can help.

How to Write a Letter of Intent For Your Special Needs Child

/in /by

Writing a letter of intent (LOI) for your special needs child can help bring them family continuity and comfort after you are gone. As a parent, the most valuable asset your child has is you and your ability to care for them. You, like no other, fully understand the nuances of your child’s coping mechanisms and what can trigger adverse outcomes. A letter of intent is meant to convey these broad personality traits as well as practical details of your child’s life so that in your absence, another family member or caretaker can make sound decisions about your child’s forward care. Don’t think a letter of intent is something to write when you get older. Parents of all ages with special needs children should have a letter of intent, review it annually, and update its contents if appropriate. Accidents and illness that may befall you are as prevalent a need to have a letter of intent as is your eventual death.

Though an LOI is not a legal document, it is one of the most important documents a parent can prepare for the future well-being of their special needs child. The letter plays a central role in your child’s special needs plan by putting your perspective on the details of their life. You can begin your letter by identifying the categories you want to address and then filling in details. There are templates of LOI available on the internet, and you might want to use one as a starting point for your letter if you feel overwhelmed and need some structure to begin.

The letter’s purpose is to guide a trustee, family member, or guardian tasked with the care of your dependent child. You will need to sort through feelings and expectations as well as noting people, places, and services that relate to your child. You may want to spend a week taking notes throughout your day as you interact with your child to think through some of the broader issues, documenting how you feel about your child and their future. The Special Needs Alliance has identified some excellent categories to include in your letter of intent. Each category can be found in the boldface type.

Outlining your family history is an excellent place to begin. When and where you were born and raised. If you are married, describe when and how you met. Include anecdotes about your grandparents, brothers and sisters, other relatives, and special friends. Incorporate when and where your child was born and raised. List their siblings, and who was particularly special to them. Don’t overlook special family pets that may have a significant impact on your child. Recount fond memories, favorite times, and feelings about your child. Provide contact information for family members and friends. Follow the family history section with a general overview, summarizing your child’s life to the present and your thoughts and hopes about how you envision your child’s future.

Next, provide the details of your child’s daily schedule to give context to their caregiver. What are the best ways to communicate with your child and how to best manage their behaviors? Do they have hot button words that should be avoided? Who are your child’s teachers, aides, bus drivers, social service providers, or employers? Be as descriptive as possible about your child’s favorite activities and events and also include what your child doesn’t like. Some children love to rake leaves but get frustrated when tasked with folding the laundry, and these details are useful for future caregivers.

Does your child require assistance with personal care? What size clothing do they wear? What are their personality traits? Do they participate in social activities? What upsets your child? What situations are best to avoid? How do you want a guardian to discuss your death or incapacity? These are some of the questions you can answer in your letter of intent. You can detail your child’s food likes and dislikes, including any allergies they may have. Did you make your child a special birthday cake? What are your traditional family holiday menus? Compile recipes or describe any specific way food should be prepared or served. Remember that some foods can affect the medications that your child may take.

Next, broach the topic of medical care. Include the detail of your child’s specific disability(s), medical history, and include the medical history of immediate family members. Name all medications your child takes and describe how they are administered and for what purpose they are given. Include any allergies your child may have. Provide a list of their current doctors, therapists, hospitals, and clinics. Include how often your child has medical and therapy appointments and describe the purposes of and goals for these sessions. List all of your child’s current health insurance information. If your child has medical records that can be retrieved online, provide the accounts username, password, and any other relevant data.

If your child is still in school, describe their educational life. What have their experiences been, and what do you desire for their future education? Note what school your child attends and what schools would you like your child to attend in the future. Does the school provide specialized services to your child? Does your child participate in extracurricular activities? Address your wishes regarding the type of education you prefer they receive, such as vocational or academic. If there are specific programs or teachers, you want to be involved in your child’s overall life plan, name them, and provide contact information.

If your child is employed or you hope them to be in the future, describe how you envision their employment. What types of work and work environments would be beneficial to your child?

List all government benefits your child receives. These benefits may include Medicaid, Medicare, Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), Supplemental Nutrition Assistance Program (SNAP, aka food stamps), and any housing assistance. Provide your child and both parents Social Security numbers. Give agency contact information, your child’s case numbers, and discuss the recertification process of each benefit. Include all reporting requirements and important dates so that benefits do not lapse. Provide copies of financial documents.

How do you imagine your child’s residential environment? Is it your plan for your child to remain with family, friends, or will there be an organization tasked with their living situation? If your child is unable to stay with the family, what is your hope for an alternative living environment? If they are placed in a group home, would you like it to be in your current community? Should the living arrangements be in a smaller or larger setting? Does your child want to live alone or have roommates?

What type of social environment does your child prefer? Do they enjoy sports, movies, or video games? Can your child be given spending money, and how have they fared handling cash in the past? Does your child travel to visit family or take vacations? With whom do they travel most successfully and happily? Include a description of your child’s religious environment. Does your child routinely attend services? What church, synagogue, or mosque do they frequent? What local clergy might know your family and your child?

What are your desires for your child’s final arrangements? Does your child have a will and any advance directives? Where are these legal documents? Have you planned for a funeral, burial or cremation, cemetery, gravestone, or religious service? Is there someone specific you prefer to officiate the ceremony?

As your letter of intent takes shape, you might realize there is other information you want to share to provide the best guidance to the person who will care for your child. In your annual review of your LOI, you may find some passages unnecessary as your child grows up. You may want to include new detail as your child’s personality develops. Think of it as a living document to be edited, added to, whatever you think will serve your child’s interests best. Put your letter of intent with your other relevant legal and personal documents. Writing a letter of intent can be a very emotional experience and a difficult document to write because you must think about how your child will live in the world without you, their parent. Approach this letter as a gift to your child and their future. You know your child better than anyone else. Even in your absence, you can still help to guide their future life, hopes, and dreams.

We help families create legal plans for loved ones with special needs. If you would like to discuss your particular needs, please don’t hesitate to reach out. Please contact our office by calling us at (318) 255-1760 and schedule an appointment to discuss how we can help.

A Guide for Purchasing Special Needs Housing

/in /by

Before beginning the search for special needs housing there are some tips to consider. The US Department of Housing and Urban Development (HUD) website lists state and local government agencies, along with other organizations, that can help you. At the federal level, the agency also provides information about HUD’s Section 504 regulations that define federal financial assistance.  In particular, Section 811 outlines it’s program for Supportive Housing for Persons with Disabilities. It is important to research what assistance is available before contacting a realtor.

Once you have a strategy in place to utilize available programs to minimize costs, it is time to think about the housing location. Is the individual with special needs employed or a student? Can they drive a car or do they need to be near public transportation to get to work or school? If the individual is a K-12 student, pay particular attention to school and after-school programs. Research what is available as many schools have programs for children with special needs that are offered outside of the standard school zoning in some neighborhoods. Also, take into account the proximity of hospitals and doctors. Consider the location of shopping (food and otherwise), dining and entertainment. Also, consider if there are any restrictions regarding support animals if that is relevant to your special needs.

Once the location list is narrowed down talk to others who have faced the same housing challenges; whether it is a support group, school parent message boards, housing assistance advocacy group, or online forum.  You can save a lot of time and money by learning from others who have gone before you. In these discussions, ask a lot of follow up questions because it is hard to ask about what you don’t know. Dialing into the details can help save you missteps in your process.

Once you have identified a general location that meets some of the criteria above, it is time to canvas the availability of appropriate homes. When thinking about the layout and design of a home, consider the rambler or ranch style house. They have a long low profile, very few stairs to navigate (if any) and have minimal exterior and interior decoration. These rambler attributes make the home reasonably easy to modify.

If mobility is an issue, look for a house with smooth floorings, such as hardwood floors or laminate flooring. Smooth surfaces provide easier access to shower and bathroom areas. Also, check to see that the doorways in the home are wide enough to accommodate a wheelchair. Assess how many modifications would be required to address the special needs while remaining within a budget. Grab bars, ramps, and other similar amenities are reasonably simple to add, and some states, cities, and counties will help pay for the modifications.

Not only are there federal, state, and local agencies to help you meet the requirements of a special needs home, there are also lenders and realtors who specialize in financing and purchasing this type of home. A good lender and realty agent will be familiar with the agencies and government programs that can help their client get approved for a loan and maneuver the housing marketplace for the right fit.

Get online and look. Realtor.com, Zillow, Homesnap, and Redfin are just a few of the online options to explore real estate from your home or mobile device. Just plug in an address of a home in the area that meets your criteria and you will get stats on that home as well as an aerial map of the neighborhood that allows you to click on and get information about homes that are not currently on the market but maybe soon.

Realize this process takes time. Identify a strong, competent real estate agent who understands your special needs parameters and is willing to put forth the time to find the right housing solution for you. Also, speak with a trusted attorney to ensure you have maximized all potential program benefits available to you. Buying a home is probably the biggest purchase you will make in your life. Buying a home that accommodates special needs adds a layer of complexity that should be well thought out before hiring a realtor. Contact our office by calling us at (318) 255-1760 and schedule an appointment to discuss how we can help you with your planning needs.

Planning for Your Special Needs Child with a Letter of Intent

/in /by

Give your family continuity and comfort by writing a letter of intent (LOI) for your special needs child. As a parent, the most valuable asset your child has is you and your ability to care for them. You, like no other, fully understand the nuances of your child’s coping mechanisms and what can trigger adverse outcomes. A letter of intent is meant to convey these broad personality traits as well as practical details of your child’s life so that in your absence, another family member or caretaker can make sound decisions about your child’s forward care. Don’t think a letter of intent is something to write when you get older. Parents of all ages with special needs children should have a letter of intent, review it annually, and update its contents if appropriate. Accidents and illness that may befall you are as prevalent a need to have a letter of intent as is your eventual death.

What is a Letter of Intent?

Though an LOI is not a legal document, it is one of the most important documents a parent can prepare for the future well-being of their special needs child. The letter plays a central role in your child’s special needs plan by putting your perspective on the details of their life. You can begin your letter by identifying the categories you want to address and then filling in details. There are templates of LOI available on the internet, and you might want to use one as a starting point for your letter if you feel overwhelmed and need some structure to begin.

The letter’s purpose is to guide a trustee, family member, or guardian tasked with the care of your dependent child. You will need to sort through feelings and expectations as well as noting people, places, and services that relate to your child. You may want to spend a week taking notes throughout your day as you interact with your child to think through some of the broader issues, documenting how you feel about your child and their future. The Special Needs Alliance has identified some excellent categories to include in your letter of intent. Each category can be found in the boldface type.

Letter of Intent: Family History

Outlining your family history is an excellent place to begin. When and where you were born and raised. If you are married, describe when and how you met. Include anecdotes about your grandparents, brothers and sisters, other relatives and special friends. Incorporate when and where your child was born and raised. List their siblings, and who was particularly special to them. Don’t overlook special family pets that may have a significant impact on your child. Recount fond memories, favorite times, and feelings about your child. Provide contact information for family members and friends. Follow the family history section with a general overview, summarizing your child’s life to the present and your thoughts and hopes about how you envision your child’s future.

Letter of Intent: Daily Schedule

Next, provide the details of your child’s daily schedule to give context to their caregiver. What are the best ways to communicate with your child and how to best manage their behaviors? Do they have hot button words that should be avoided? Who are your child’s teachers, aides, bus drivers, social service providers, or employers? Be as descriptive as possible about your child’s favorite activities and events and also include what your child doesn’t like. Some children love to rake leaves but get frustrated when tasked with folding the laundry, and these details are useful for future caregivers.

Letter of Intent: Assistant with Personal Care

Does your child require assistance with personal care? What size clothing do they wear? What are their personality traits? Do they participate in social activities? What upsets your child? What situations are best to avoid? How do you want a guardian to discuss your death or incapacity? These are some of the questions you can answer in your letter of intent. You can detail your child’s food likes and dislikes, including any allergies they may have. Did you make your child a special birthday cake? What are your traditional family holiday menus? Compile recipes or describe any specific way food should be prepared or served. Remember that some foods can affect the medications that your child may take.

Letter of Intent: Medical Care

Next, broach the topic of medical care. Include the detail of your child’s specific disability(s), medical history, and include the medical history of immediate family members. Name all medications your child takes and describe how they are administered and for what purpose they are given. Include any allergies your child may have. Provide a list of their current doctors, therapists, hospitals, and clinics. Include how often your child has medical and therapy appointments and describe the purposes of and goals for these sessions. List all of your child’s current health insurance information. If your child has medical records that can be retrieved online, provide the accounts username, password, and any other relevant data.

Letter of Intent: Education

If your child is still in school, describe their educational life. What have their experiences been, and what do you desire for their future education? Note what school your child attends and what schools would you like your child to attend in the future. Does the school provide specialized services to your child? Does your child participate in extracurricular activities? Address your wishes regarding the type of education you prefer they receive, such as vocational or academic. If there are specific programs or teachers, you want to be involved in your child’s overall life plan, name them, and provide contact information.

Letter of Intent: Employment

If your child is employed or you hope them to be in the future, describe how you envision their employment. What types of work and work environments would be beneficial to your child?

Letter of Intent: Government Benefits

List all government benefits your child receives. These benefits may include Medicaid, Medicare, Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), Supplemental Nutrition Assistance Program (SNAP, aka food stamps), and any housing assistance. Provide your child and both parents Social Security numbers. Give agency contact information, your child’s case numbers, and discuss the recertification process of each benefit. Include all reporting requirements and important dates so that benefits do not lapse. Provide copies of financial documents.

Letter of Intent: Residential & Social Environment

How do you imagine your child’s residential environment? Is it your plan for your child to remain with family, friends, or will there be an organization tasked with their living situation? If your child is unable to stay with the family, what is your hope for an alternative living environment? If they are placed in a group home, would you like it to be in your current community? Should the living arrangements be in a smaller or larger setting? Does your child want to live alone or have roommates?

What type of social environment does your child prefer? Do they enjoy sports, movies, or video games? Can your child be given spending money, and how have they fared handling cash in the past? Does your child travel to visit family or take vacations? With whom do they travel most successfully and happily? Include a description of your child’s religious environment. Does your child routinely attend services? What church, synagogue, or mosque do they frequent? What local clergy might know your family and your child?

What are your desires for your child’s final arrangements? Does your child have a will and any advance directives? Where are these legal documents? Have you planned for a funeral, burial or cremation, cemetery, gravestone, or religious service? Is there someone specific you prefer to officiate the ceremony?

As your letter of intent takes shape, you might realize there is other information you want to share to provide the best guidance to the person who will care for your child. In your annual review of your LOI, you may find some passages unnecessary as your child grows up. You may want to include new detail as your child’s personality develops. Think of it as a living document to be edited, added to, whatever you think will serve your child’s interests best. Put your letter of intent with your other relevant legal and personal documents. Writing a letter of intent can be a very emotional experience and a difficult document to write because you must think about how your child will live in the world without you, their parent. Approach this letter as a gift to your child and their future. You know your child better than anyone else. Even in your absence, you can still help to guide their future life, hopes, and dreams.

We help families create legal plans for loved ones with special needs. If you would like to discuss your particular needs, please don’t hesitate to reach out. Contact our office by calling us at (318) 255-1760 and schedule an appointment to discuss how we can help you with your special needs planning.