Estate planning for people with disabilities is an important process that can help to ensure that the person’s needs are met after their death. There are a number of estate planning options available to people with disabilities, and the best option for a particular individual will depend on their specific needs and circumstances.
One of the most important estate planning options for people with disabilities is the testamentary trust. A testamentary trust is a trust that is created in a will. The trust can be used to hold assets for the benefit of the disabled person after their death. The trustee of the trust will be responsible for managing the assets and distributing them to the disabled person in accordance with the terms of the trust.
Another important estate planning option for people with disabilities is the Henson trust. A Henson trust is a type of testamentary trust that is specifically designed to benefit people with disabilities. Henson trusts are exempt from certain income and asset limits that can apply to other types of trusts. This means that people with disabilities can receive income and assets from a Henson trust without losing their eligibility for government benefits.
In addition to testamentary trusts and Henson trusts, there are a number of other estate planning options available to people with disabilities, such as:
- Registered Disability Savings Plan (RDSP): An RDSP is a government-sponsored savings plan that can be used to save for the long-term financial needs of people with disabilities. The government provides matching grants and bonds for contributions to an RDSP, which can make it a very attractive savings option for people with disabilities.
- Joint tenancy: Joint tenancy is a type of ownership that allows two or more people to own property together. When property is owned in joint tenancy, the surviving joint tenant automatically inherits the property when one joint tenant dies. This can be a simple and effective way to ensure that a disabled person’s assets are passed on to their loved ones after their death.
- Life insurance: Life insurance can be used to provide financial support for a disabled person’s loved ones after their death. The beneficiary of a life insurance policy can use the proceeds to pay for funeral expenses, outstanding debts, or other expenses related to the death of the disabled person.
It is important to note that estate planning for people with disabilities can be complex. It is important to consult with an experienced estate planning lawyer to discuss the best options for a particular individual’s needs and circumstances.
This article is for informational purposes only and is not legal advice. Contact us today to discuss your specific situation.