One of the most important parts of planning your estate is setting up a plan for your children to be taken care of when you pass away. You can set up an account for adult children to use in financial emergencies or create a trust that a family member will oversee on behalf of your minor children. If you have a child with special needs and are a California resident, you can create an account to ensure your child is cared for. Here are some important tips to remember for your special estate planning needs.
Creating a letter of intent
Before you create a letter of intent for your special estate planning needs, you may want to think about the type of life you want for your child when you’re no longer here. The letter of intent will clearly state your wishes for your child as they grow. Include information about your son or daughter’s daily care needs and medical history and share the document with trusted relatives and family friends. It is also important to update the letter every few years or as your child’s healthcare needs change.
Consider additional requirements
As you consider your special estate planning needs, you may want to learn about Supplemental Security Income and Medicaid. These tools can make it easier for friends and loved ones to cover your child’s medical and daily expenses. You can also speak with relatives who plan to leave the child money and ask these family members to direct all funds toward your child’s special needs trust. It’s also a good idea to find out how various types of special needs trusts will impact your taxes.
If your child is over the age of 18, you may also want to apply for conservatorship or guardianship for your son or daughter if necessary. Assess your child’s needs and apply as soon as possible, since the applications could take up to a year to process.