Special Needs Child | Living Trust Question

[BubblyRetiree]

Hi, I'm new to this forum and one of the reasons I came here is b/c I'm hoping one (preferably more) of you have run into this similar situation...

I have one special needs daughter and another daughter with bad credit issues - when putting together our Living Trust our attorney said our bad-credit daughter's collectors could actually come in after we pass and take the family home in lieu of satisfying debts...she (the attorney) suggested leaving the house/property to our special needs daughter but we find that an odd arrangement since she can neither read, write or talk!

Does anybody else out there have a similar situation? What did you do to make sure the home & assets didn't slip out of the family and into the hands of the state? ANY advice is most welcome!

 

[MichaelB]

Hi bubbly, and welcome to the forum. Your question is really quite complex and while a poll is interesting you really need an attorney that specializes in special needs trusts. You can designate your assets to be used solely for your daughter with special needs without leaving them to her.

 

[antmary]

Hi, I'm new to this forum and one of the reasons I came here is b/c I'm hoping one (preferably more) of you have run into this similar situation...

I have one special needs daughter and another daughter with bad credit issues - when putting together our Living Trust our attorney said our bad-credit daughter's collectors could actually come in after we pass and take the family home in lieu of satisfying debts...she (the attorney) suggested leaving the house/property to our special needs daughter but we find that an odd arrangement since she can neither read, write or talk!

Does anybody else out there have a similar situation? What did you do to make sure the home & assets didn't slip out of the family and into the hands of the state? ANY advice is most welcome!

Hi Bubbly,

Welcome to the forum!

We went to an estate planning attorney and started out with the trust for the entire estate. Within the trust, a special-needs trust was set up for our son. Every few years we amend the trust if needed. There is also the option of "spendthrift trusts" for other children, if they have money issues.

We own two homes, so may leave one to each child. The rest of the assets will be split evenly between the two.

I am glad you brought up this subject...there is lots I need to learn!

antmary