First, consider the needs of your children with autism compared to those who do not have autism.  The key difference in most situations is the level of attention needed in school and during tutoring sessions.  Some public schools have excellent resources for children with autism, but many communities suffer from a dismal lack of resources.  If your town does not have adequate support systems for children with autism, you will probably be necessary to hire a private tutor.  This can be expensive, and your estate planning should reflect this.

The two things that you need to consider when creating an estate plan that will adequately take care of a child with autism are 1) funds and 2) management and distribution of funds.  Funds refers to the cash, stock, real estate, and other assets available to pay for your autistic child’s education and living expenses.  If you do not have many assets, consider buying life insurance.  Life insurance policies can be placed into a special needs trust, so your child with autism will not receive a reduction in state and government benefits while receiving payments.

Management of funds is just as important as the funds themselves.  Appoint a trustworthy trustee who can look after your child and disperse funds to them.  This should be a person that you know well and who knows your child with autism.  If you cannot think of someone who you would trust to look after your child, then appoint a bank trustee or law firm.  Law firms that specialize in children with special needs are usually willing to perform this function, and they are accountable to numerous regulatory authorities.

Remember, the quality of life for your child with autism is the most important thing to consider when you are creating an estate plan.

This post is governed by attorney advertising rules.  Eric is an attorney who specializes in New York wills, Autism law, and special needs planning.  Feel free to contact him via e-mail at Eric@nyhomelaw.com

New York law allows for the creation and funding of a special needs trust.  Very few New York families have taken advantage of these trusts, although in recent years there has been more interest in them.  This has corresponded to a significant increase in the number of children being diagnosed with autism and other disorders.

A special needs trust is designed to provide for the well being of a child while preserving government benefits.  Most parents take good care of their children with special needs, but when the parents get older and eventually die they are no longer able to continue to provide this care.  Inevitably, a special needs child will qualify for New York State or Federal benefits.  These benefits may include basic health insurance, housing, and money for food.  However, these benefits usually fall short when it comes to covering all the needs and expenses of the average person.  For example, eye glasses are frequently not covered, and anyone who needs them will have to pay for them out of their own pocket.  Also, in the area of housing, government benefits will frequently only pay for crowded institutions.  These facilities may not be the best environment for a child or young adult with special needs.

I order to insure that your special needs child is taken care of in the standard to which they have been accustomed, you should create a special needs trust.  These are unique trusts that supplement government benefits without replacing them.  A trustee governs all payouts, and the beneficiary themselves will not have a say in how the money is handled.  This is appropriate for most people with special needs, though, and the trustee will essentially take the place of the parents when it comes to financial decisions.

Let’s look at two examples.  Child #1 is cared for by his parents until they have to go to a nursing home.  A few years later they die and leave $500,000 to the child.  The surrogate’s court appoints a guardian for the child, and the $500,000 is spent on behalf of the child.  When Child #1 is 38 years old, though, the money runs out after he requires a medical procedure.  Child #1 is now assigned to a case worker and placed in an institution where he has to share a room and other facilities.

Child #2 is similarly cared for by his parents until they grow old and die.  Rather than leave the money outright to the child, though, his parents have created a special needs trust and left all their money to it.  Child #2 thereby receives government benefits including Medicaid, and the $500,000 special needs trust is used by the trustee to cover things that government benefits will not pay for such as eyeglasses, meals in restaurants, and a trip to Disney World.  Child #2 is well provided for, and never ends up relying entirely on government benefits or living in an institution.

A special needs trust does not have to be funded immediately.  Most people provide for the trust to benefit their child via their estate or a life insurance policy.  New York wills are valuable estate planning tools, but they are no substitute for a special needs trust.

For more about a special needs trust, contact a law firm such as Myron Landis & Taft at www.nyhomelaw.com

Feel free to contact Eric by e-mail at Eric@nyhomelaw.com

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Many people die intestate, or without making a will.  This is usually a bad idea, though, as the State of New York will decide how your money is distributed instead of you.  Intestacy can be avoided by drafting and executing a will.  In New York, a will should be written and signed in front of an attorney.  Two witnesses should be present as well to verify the signature.  This will prevent people from challenging the validity of a will after your death.

Wills in New York range from simple to very complex.  Most people only require a straightforward will, even if they are worth as much as $1 million.  People with a net worth of $5 million or more will want to explore the use of trusts or more complex methods of disposing of their property.  Someone in this category should consider a gift to charity, as this will reduce their taxes as well.

New York wills are important, and must be probated by the Surrogate’s Court upon the death of the individual who made the will.  For more information about drafting a will, please contact a lawyer.

Feel free to contact Eric at Eric@nyhomelaw.com

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Because of the potential estate tax burdens, everyone who owns real estate or has even a few hundred thousand dollars in stocks, bonds, or other property should look into drafting a New York will.

New York wills give the testator the option of leaving money to charity, putting money into a trust, or otherwise minimizing tax payments.  In my opinion, everyone who lives in New York should consult with an attorney about drafting a will.  This is a relatively inexpensive option.  Spending $1,000 now could easily save you hundreds of thousands of dollars in estate taxes later!

Feel free to contact Eric by e-mail at Eric@nyhomelaw.com

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Along with drafting New York Wills, most attorneys in New York will recommend drafting Powers of Attorney for their clients.  These are useful to have and can help someone manage their estate if they become incompetent for whatever reason.  In order to function in this capacity, though, a Power of Attorney must be durable.  Ask your lawyer about drafting a Durable Power of Attorney, which is permitted under New York law.  It is important to understand the different types of Powers of Attorney, what they mean, and how they function.

In addition to a will, New York residents should consider having a Power of Attorney as well.

Feel free to contact Eric by e-mail at Eric@nyhomelaw.com

Attorney advertising.  This post is not legal advice.  For legal advice, consult your attorney.