Michigan Special Needs Planning – The Letter of Intent
April 4, 2011
Law school and the years of research and continuing education that come afterward seem to place all (or most) of the emphasis on the legal aspects of a given situation. That probably doesn’t come as much of a surprise to you. But, as a Grand Rapids estate planning lawyer I’ve come to realize that the legal without the practical can leave holes in a family’s planning. That is why I focus on providing my client families with an estate plan that covers both the legal AND the practical sides of life.
And in my opinion, planning for a family who has one or more children with special needs is one of the areas where this legal/practical combination is the most important. I truly believe it starts with the special needs planning lawyer’s perspective – it should be a caring one. You can read some of my thoughts by reading my previous blog posts here and here. Those posts focus on some of the legal issues that need to be considered when planning for a child with special needs.
The list of practical considerations is even greater when planning for a child with special needs. A letter of intent is one very important practical item that parents of a special needs child should make sure is part of their estate plan. My colleague, Rania Combs, recently wrote an excellent post on the topic, which you can read by clicking here. She provides many excellent suggestions on the topics that should be covered and answers some common questions.
At Lichterman Law, we provide all our client families with a similar draft document as part of our Children Protection Plan. And for our client families who have children with special needs, we make sure to walk with them through the important legal and practical considerations that will help make sure their child with special needs is cared for by who they want, in the way they want and with all the love and support they deserve.
Call us at 616-827-7596 to find out if your family qualifies for the Lichterman Law Difference. And if you reference this blog post, we will waive the Peace of Mind Planning Session fee (a $750 value!).
Michael Lichterman is an estate planning and business planning attorney who helps families and business owners create a lasting legacy by planning for their Whole Family Wealth™. This goes beyond merely planning for finances – it’s about who your are and what’s important to you. He focuses on estate and asset protection planning for the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, family owned businesses and pet planning. He takes the “counselor” part of attorney and counselor at law very seriously, and enjoys creating life long relationships with his clients – many of which have become great friends.
Critical Importance of Estate Planning for a Michigan Special Needs Child
October 24, 2010
I’ve touched on the subject before in a previous post and in my weekly client e-newsletter. A presentation given to our Grandville, Michigan Rotary group tugged at my heart and renewed within me the passion to help spread the word about the vital importance of proper estate planning to families with children who have special needs. Some of the great folks behind Benjamin’s Hope spoke to us about the struggles and joys of having a child with special needs (specifically autism in this case) and the vision they have for a unique location where children can reach their full potential.
I’m not going to pretend that I know what it is like to be a parent of a special needs child. However, I have clients, friends and colleagues who have children with special needs and it has taught me this – they are children first and foremost. They light up their parents lives and bring joy to those whose lives they touch. And yes, there are added stresses and struggles. The great thing about West Michigan is that there are numerous resources available to parents and their special needs children. And although they may not qualify for them now, due to the parents’ income or other factors, there are also financial resources available through government programs and private programs.
As parents, we love our children more than anything in the world. So why wouldn’t we want them to receive every benefit available to them? Yet many parents put their children at risk of not receiving these benefits because they don’t spend the time or money to put a proper estate plan in place (or they don’t know what options are available). And what if something happened to the parents? It’s a critical consideration for all parents and even moreso for the parents of a special needs child. Who would care for your child? Do they know how to care for a child with special needs? Would a care manager be important? Have you provided for one and given direction on how he or she should be involved? Have you provided financial resources through life insurance or investments so your child can enjoy the life you want them to have? Have you made sure to protect whatever benefits they may be entitled to as they get older or are they at risk because of the planning you’ve done (or lack of planning)?
As an attorney who focuses in estate planning, I make it a point to keep up on the unique planning opportunities available to parents with special needs children. Please, please, please make sure to put a comprehensive plan in place. There’s no doubt you care very deeply about your child(ren) – show it by planning for their future. And make sure whatever attorney you work with has specific training, knowledge and experience planning for children with special needs. We can help if you call (616) 827-7596 – mention this blog post and we will waive the fee for your Peace of Mind Planning Session ($750 value)!
Michael Lichterman is an estate planning attorney who helps families and business owners create a lasting legacy by planning for their Whole Family Wealth™. This goes beyond merely planning for finances – it’s about who your are and what’s important to you. He focuses on planning for the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, and family owned business succession – and he is privileged to do so from a Christian perspective. He takes the “counselor” part of attorney and counselor at law very seriously, and enjoys creating life long relationships with his clients – many of which have become great friends.
Planning for Special Needs Children in Michigan
August 22, 2010
I love working with families and helping them ensure their children’s future, there’s no question about that. Although there are special considerations for each family when it comes to planning, there are some additional considerations for families with a child who has special needs. This post was originally one of my weekly fun and informative e-newsletters. I received such great feedback that I thought I would share it with everyone . Feel free to forward this along to families who come to mind, and let them know that we will certainly assist them with their unique situation. And you can sign-up to receive my weekly e-newsletter by clicking here. As a bonus, you will receive my free report “10 Things You May Not Know About Cheap Online Will Software.” Enjoy . . . and share your thoughts via comment below or clicking here!
Every child is special, in their own unique way. That said, certain children are even more precious–and their needs are great. I’m referring to what many call “special needs children” (though, it’s perhaps better to call them children with special needs–after all, they really are “children” FIRST, and not to be defined first by their “needs”!).
Because this is something which adds certain complications to any family, I thought I’d take a moment this week to address 3 key wealth strategies for families with these beautiful, special children.
Planning Your Family’s Wealth Around a Child With Special Needs
Here is the standard thinking, in regards to setting up your affairs with children who have special needs:
Families realize that they have to support these children for the rest of their lives. So, they typically write wills and take out significant term life insurance policies. They are careful to name a trust as the beneficiary, because if their child has more than a minimal amount of assets upon reaching age 18, he/she will no longer be eligible for some government benefits.
However, while these families are indeed on the right track, parents with special needs children also should:
1. Set up a second trust. I am a strong supporter of stand-alone special needs trusts. The purpose of this additional trust would be to make sure that the provisions in the parents’ trust don’t disqualify the child from receiving any government benefits that would otherwise be available for his/her care. It’s better to “wall off” what the child receives. The separate trust is also there so that friends and family members can contribute to the child’s care while the family is still alive–without causing the child to lose eligibility for federal disability benefits.
2. Increase savings. These families need a much larger emergency fund than most, and they also need to create a “reserve fund”. They should concentrate on savings–rather than paying off debt–especially if interest rates on loans are low.
3. Plan for three retirements. These families not only have to plan for their retirements, but also for the child’s long-term care. They should maximize their savings and take an aggressive approach with their portfolio to maximize returns over the long run.
While I’m not a financial planner, I thought that these tips were so important that if you find yourself in this situation, you should raise them with your professional adviser.
Michael Lichterman is an estate planning attorney who helps families and business owners create a lasting legacy by planning for their Whole Family Wealth™. This goes beyond merely planning for finances – it’s about who your are and what’s important to you. He focuses on planning for the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, and family owned business succession – and he is privileged to do so from a Christian perspective. He takes the “counselor” part of attorney and counselor at law very seriously, and enjoys creating life long relationships with his clients – many of which have become great friends.
