Parents often assume when creating an estate plan that their children will always remain healthy. They leave all their assets directly to their children without restriction and without any holding back receipt of the inheritance by the child. However, parents rarely consider that a childmay become disabled after they create their estate plan, either because of an accident or illness. A disabled child who is receiving some certain types of government benefits may become
ineligible for receiving those benefits if an inheritance is received outright
and without restriction. Parents need to plan for this.
In a properly designed estate plan, provisions should be made so that if the child becomes disabled after the estate plan is created, they may receive their inheritance and yet still qualify for governmental benefits. It is important to consult with a knowledgeable estate planning attorney when you are ready to address these issues.