A comprehensive special needs plan typically consists of six critical steps:
Estate planning: Start by excluding the individual with special needs from all assets in the estate. This prevents them from directly inheriting property, which could potentially jeopardize their eligibility for certain need-based government benefits.
Determining eligibility: Maximize the person's eligibility for needs-based government benefits. This helps to ensure they have access to all the assistance they may require.
Setting up a special needs trust: This maintains their quality of life or keeps them eligible for government benefits. A special needs trust may be a third-party special needs trust or a first-party special needs trust if the individual already has assets in their name.
Writing a letter of intent: While not a legal document, this letter serves as instructions to future guardians or caretakers. It outlines the individual's likes, care routines, and needs. This step is vital to ensure continuity in the quality of care provided to the individual.
Determining guardianship: Assess whether guardianship is appropriate once the individual reaches the age of majority. If the individual is not able to make legal decisions, a parent or guardian needs to get court-appointed guardianship, or limited conservatorship in certain jurisdictions.
Family communication: The final, and arguably the most critical step, involves informing your family about the plan. Even the best plans may not be effective if no one knows about them. Ensuring that your family members are aware of and understand the plan is crucial for its successful execution.