Afraid That You Don’t Have Much of an Estate to Leave to Your Disabled Child?
November 7, 2008
Many parents worry that when they die their estates will be too small to provide much care for their disabled child. One solution is to purchase “second-to-die life insurance.” These policies are relatively inexpensive, and the company pays the death benefit only after both of the people insured have died.
Usually purchased by spouses, these policies can in fact be purchased by any two people. This could be beneficial if, for example, a single mother and single daughter both live with and care for a disabled child / grandchild.
You should work with your financial advisor to select the best insurance for you. Remember that when selling insurance, advisors are paid on commission. When the advisor is presenting you with quotes from various companies, make sure he also shows you how much commission he would make under each quote.
A Family Only Needs One Special Needs Trust
November 6, 2008
Have you set up a Special Needs Trust (SNT) to receive your disabled child’s share of your estate when you die? Are there other family members who might also want to leave something to your disabled child, for example grandparents or a doting uncle? Or even non-family members, such as god-parents or very close friends?
If so, be sure to tell them about your trust – there is no need for them to spend time and money asking a lawyer to draft another special needs trust as part of their own estate planning package. That person’s attorney will simply need to see a copy of your special needs trust and she will reference it in your family member’s will.
While it may feel awkward, you will save your family time and money by mentioning to them that you have already established a trust for your child and that they can direct inheritances into it rather than drafting separate trusts with their own attorneys.