As your friends express their concerns about how they’ll pay for their children’s college education, you may be wondering how to care for the special needs of your child. You’ll likely be providing financial assistance for your child well after their college years and you should be financially prepared. If you’re a Pennsylvania resident, here are some important estate planning tips to keep in mind.
Create a special needs trust
A special needs trust is an essential estate planning tool when you’re preparing for your child’s financial future. You can put the money you save into the trust to give to your child when the time is right. Or, the money can be used to pay for your child’s living expenses and medical care. The trust won’t interfere with your child’s eligibility for SSI or Medicaid so it’s a great way to put money aside for when your child really needs it.
Write your will
Another necessary step in estate planning is creating a will. A will details how your assets will be handled after you pass away. When you write your will, you can make sure your assets are left to your child’s special needs trust and not to your child. Otherwise, the probate court will automatically award your assets to your son or daughter. If you don’t have a will, your child may not be eligible for certain federal benefits.
Be sure not to take on the task of creating a will on your own if you have a child with special needs. Speak with an estate planning lawyer to learn more about the process.