It wasn’t long ago that Debbie met with a prospective client, who was interested in filing for Medi-cal benefits for her special needs child. During her consultation the client revealed that she in fact, already had an Estate Plan which was drafted for her by a past attorney. In said Estate Plan, the client had chosen a family member (who she was less than fond of) to be sole beneficiary. When asked why, the client revealed she had a special needs child and worried about the well being of her child once she passed away.
The client made it clear that if possible, she would have preferred her assets and money go directly to the child, but didn’t think it was possible because the child was special needs.
What the client didn’t know was she could in fact leave her property and assets directly to her child, through a Third Party Special Needs Trust. Not only that, but with the use of the Third Party Special Needs Trust, the client would not only be able to provide a residence and pay the child’s utility costs, she could do so without her child’s Medi-cal benefits being dropped.
Most importantly, the client didn’t have to bring in a third party and hope that her money was distributed properly per her wishes. She had peace of mind knowing they would be.
The moral of this story is to never settle when choosing beneficiaries. The very idea of an Estate Plan is to insure your needs are met. As a client, it’s you who pays the drafting costs. The assets being distributed are yours. It only makes sense that your Estate be directly distributed to people of your choosing, and not to those of your second choosing. One of the greatest benefits of a living trust is that it can be drafted to follow your goals and wishes for your unique family.
