Estate Planning for Individuals with Disabilities: Special Considerations to Keep in Mind

Estate planning is essential for everyone, but people engaging in estate planning for individuals with disabilities have special considerations to keep in mind. With the right estate plan, people can ensure that their loved ones with disabilities are taken care of, and their needs are met for the duration of their lives. If you need assistance developing an estate plan for a family member with a disability, it is prudent to meet with an experienced Washington estate planning attorney.

Estate Planning for Individuals with Disabilities: Special Considerations to Keep in Mind

• Special Needs Trusts

A Special Needs Trust (SNT) is a powerful estate planning tool that can help individuals with disabilities maintain their eligibility for government benefits, such as Supplemental Security Income (SSI) and Medicaid, while also providing them with a supplemental source of funds for their ongoing care. An SNT allows assets to be held in trust for the benefit of the individual with a disability without disqualifying them from receiving government benefits.

Unlike other types of trusts, a SNT is specifically designed to meet the unique needs of individuals with disabilities. There are two primary types of SNTs: first-party SNTs and third-party SNTs. A first-party SNT is funded with the individual’s own assets, while a third-party SNT is funded with assets from someone other than the beneficiary.

• Guardianship

One of the most important considerations for individuals with disabilities is who will be responsible for making decisions on their behalf if they become incapacitated. Establishing a guardianship is an essential part of the estate planning process for individuals with disabilities. A guardian can be appointed to make legal, financial, and medical decisions for the individual with a disability if they are unable to do so themselves. In Washington State, the court appoints guardianship through a legal process that requires medical evidence and proof of incapacity.

• Durable Power of Attorney

A Durable Power of Attorney (GPOA) is another crucial component of an estate plan for individuals with disabilities. A GPOA is a legal document that authorizes another person to act on behalf of an individual with a disability if they are unable to make their own decisions. The person authorized to act on behalf of the individual with a disability is known as the agent or attorney-in-fact.

Having a GPOA in place is especially important for individuals with disabilities because they may be unable to manage their financial affairs or make medical decisions on their own. A GPOA allows the designated agent to manage the individual’s affairs in accordance with their wishes and best interests.

• Beneficiary Designations

It is important to consider beneficiary designations carefully when estate planning for individuals with disabilities. In many cases, naming the individual with a disability as the direct beneficiary of a life insurance policy or retirement account can disqualify them from receiving government benefits. Instead, consider establishing a special needs trust and naming the trust as the beneficiary.

Talk to a Seasoned Washington Estate Planning Attorney

Estate planning can be a complex process, and it is even more so for individuals with disabilities. If you need help developing an estate plan for a loved one with a disability, it is wise to consult with a seasoned estate planning attorney to learn more about your options. Call Gregorek & Associates at 425-284-3450 or fill out our contact form and we will be in touch to schedule a meeting.