Parents in Florida that have special needs children may worry about how their children will have financial support when they are gone. Setting up an estate plan that provides for a special needs child is crucial for these parents. However, many parents of special needs children make mistakes in their estate plan that can negative consequences down the line.
One of the most common mistakes that parents of special needs children make in their estate plans is assuming that their other children will provide for the special needs child. While siblings of a special needs adult may be willing to provide for them financially, siblings could run into money problems. Parents need to set up a financial safety net for their special needs child so that they do not have to rely solely on their relatives.
Parents of a special needs child may want to invest in a life insurance policy and fund a special needs trust. When a life insurance policy is set up for a special needs child, parents can leave the other assets in their estate to their other children. A special needs trust may be used to help ensure that money from the life insurance policy is used to provide for the special needs child.
Some parents create a special needs trust in a will rather than setting up a revocable living trust. As everything in a will is part of the public record, not creating a trust outside of a will could leave a special needs adult vulnerable to financial predators. An estate planning attorney may be able to help parents of a special needs child to set up a secure financial plan for their child’s future.