New Jersey estate planning attorney Christine Matus (https://matuslaw.com/estate-planning-options-families-special-needs-child/), of The Matus Law Group, highlights the importance of comprehensive estate planning to help children with special needs receive the financial security and care they require throughout their lifetime. Estate planning is a critical step for any family, but it becomes even more essential when caring for a special needs child.

Families often face unique challenges in planning for a child with special needs, especially when it comes to maintaining eligibility for government benefits such as Medicaid and Supplemental Security Income (SSI). Without proper planning, an inheritance or financial gift meant to support a child could unintentionally disqualify them from receiving these vital resources. New Jersey estate planning attorney Christine Matus emphasizes that careful planning can provide long-term financial stability while preserving access to essential government aid.

One of the most effective tools available to families is the special needs trust (SNT). As New Jersey estate planning attorney Christine Matus explains, “Perhaps the most common or well-known estate planning instrument for families with special needs children is the special needs trust. This specific type of trust is designed to meet the child’s financial needs while also maintaining their eligibility for certain government benefits.” Unlike a direct inheritance, assets placed in an SNT are not counted toward the child’s financial resources, thereby safeguarding their eligibility for means-tested benefits.

A special needs trust provides a structured way for families to support their child without jeopardizing government assistance. The trust is managed by a trustee who has discretion over how and when funds are distributed to help ensure they supplement, rather than replace, government benefits. The funds from an SNT can be used for a variety of purposes, including medical expenses, therapy, education, transportation, and recreational activities that enhance the child’s quality of life.

Christine Matus advises families to carefully consider how they will fund the trust. One of the most common methods is life insurance, which allows parents to direct proceeds into the trust upon their passing. Naming the SNT, rather than the child, as the beneficiary enables financial resources to be preserved without affecting eligibility for Medicaid or SSI. Other funding sources include inheritance, retirement accounts, and gifts from family members. However, Matus warns that any direct financial transfers to the child could disrupt their eligibility for government assistance.

In addition to setting up an SNT, families should incorporate power of attorney documents into their estate plan. These documents allow a designated individual to make financial and healthcare decisions on behalf of the special needs child once they reach adulthood. If the child has the capacity to sign legal documents, they may also create their own power of attorney to help ensure their wishes are honored. Advanced healthcare directives can provide further protection by allowing a trusted individual to make medical decisions if the child is unable to do so.

Another essential component of estate planning for special needs families is the Letter of Intent. This document serves as a detailed guide for future caregivers, outlining the child’s daily routines, medical needs, preferences, and any other critical information that will help maintain their well-being. While not legally binding, the Letter of Intent plays a crucial role in facilitating continuity of care and preserving the child’s quality of life.

When a child with special needs turns 18, they are legally considered an adult, even if they require ongoing assistance in making financial and personal decisions. In such cases, families may need to consider establishing a guardianship or conservatorship. New Jersey law allows for a guardian of the person, who oversees healthcare and daily living decisions, as well as a guardian of the estate, who manages financial matters.

Christine Matus stresses the importance of assessing the child’s level of independence before pursuing guardianship. Unlike a power of attorney, which allows the child to retain some decision-making authority, guardianship removes this ability and requires court approval. Depending on the child’s specific needs, a limited or full guardianship may be appropriate.

Every family has unique estate planning needs, but those with special needs children must take additional precautions to safeguard their child’s financial security and overall well-being. Christine Matus and The Matus Law Group are dedicated to helping families in New Jersey establish the right legal structures to protect their children’s futures. From setting up special needs trusts to guiding families through guardianship decisions, Matus can provide the support necessary to create a comprehensive estate plan.

Families who need assistance with estate planning for a special needs child are encouraged to consult with a knowledgeable attorney to explore their options. Taking proactive steps today can provide peace of mind and long-term stability for the child’s future.

About The Matus Law Group:

The Matus Law Group is a trusted New Jersey law firm dedicated to estate planning, real estate law, and special needs planning. With a strong commitment to assisting families in protecting their loved ones, the firm provides tailored legal solutions to help ensure long-term security and peace of mind. Led by Christine Matus, the team offers experienced guidance in addressing complex estate planning issues and establishing legal structures that preserve assets while maintaining government benefit eligibility.

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Company Name: The Matus Law Group
Contact Person: Christine Matus
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Phone: (732) 785-4453
Address:125 Half Mile Rd #201A
City: Red Bank
State: New Jersey 07701
Country: United States
Website: https://matuslaw.com/monmouth-county-nj/