I recently ran across a SmartMoney article discussing an important subject--planning for heirs who receive disability or have special needs. According to the article, which cites U.S. census statistics, approximately 12% of the population suffers from some for of metal or physical disability.
For many people with a disability, (particularly those who are unable to live alone), government aid is essential to provide them with the level of care that they need, which can cost tens of thousands of dollars a year. If you plan on leaving an inheritance to someone in that position, it's important to note tha the gift you leave them could disqualify them from important benefits they may be receiving.
Fortunately, there are planning options that can help you provide for such individuals while avoiding the uninteded consequence of disqualification. The article offers several suggestsions, such as Special Needs Trusts, QPRT's (Qualified Personal Residence Trust), and creative housing solutions.
If you have heirs who receive disability or other government aid, be sure to ask your estate planning attorney how your estate plan may effect their needs after you're gone.
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