It’s a story I’ve seen far too often: families with the best of intentions leave assets to a child or other relative, hoping they’ll use the money to care for a sibling or loved one with special needs. It seems reasonable—logical, even. “I trust them,” the parent says. “They’ll do the right thing.”
But without legal scaffolding, anything can happen to that money.
Trust Isn’t the Issue—Life Is
It’s not about whether you trust your other children or how responsible they are. It’s about what life throws at them—and what that means for your vulnerable loved one.
• Divorce happens. Even if you adore your son- or daughter-in-law, a divorce could result in your child’s inheritance being treated as community property and divided in court.
• Death happens. If your child passes away, their spouse becomes the next of kin. They inherit the assets. And while they might be wonderful now, there is no legal guarantee they’ll continue to support your loved one with special needs.
• Remarriage happens. If your former in-law remarries, those assets may become community property of the new marriage. At this point, you’re placing a massive amount of trust in people you haven’t even met yet.
• Inheritance shifts. What if your child and their spouse both pass away, the money likely goes to their children. If those children are minors, someone else—not you—will control the money. If they’re adults, there’s no legal obligation for them to care for your child with special needs.
This is how assets meant for your child can disappear—not through malice or neglect, but through the natural (and sometimes tragic) course of life.
Liability Happens Too
If your child is ever sued—after a car accident, a business issue, a medical crisis, the inherited money is fair game. If they go through a financial hardship, it’s easy to rationalize “borrowing” from the fund. Even highly responsible people can falter under pressure. Even if they intend to repay it life happens, and the assets earmarked for your child’s care can evaporate.
You Worked Too Hard For This
You’ve spent a lifetime building and protecting your assets. You’ve saved, invested, and made sacrifices. Why leave their future to chance?
The Solution: Legal Protection, Not Distrust
Establishing a Special Needs Trust (alongside a Family Trust and properly written wills) does not mean you don’t trust your children. It means you’re protecting them, too—from divorce, liability, and the weight of having to make impossible financial decisions.
Special Needs Trusts are specifically designed to:
- Preserve government benefits – even a modest inheritance can jeopardize benefits.
- Provide ongoing financial support
- Ensure assets are used exclusively for the care and quality of life of your loved one with special needs
They’re not the same as a general family trust or a will. They contain crucial legal language that protects both the money and the person it was meant to support.
Bottom Line
Good intentions are not enough to protect your child’s future.
A Special Needs Trust is an essential part of a comprehensive special needs plan. Leaving assets to other family members to care for your child with special needs can have a devastating effect on their future.
Whether your child is 4 or 40 years old, it is time to put a plan into place before life forces your hand. Proactive planning gives you peace of mind today and protects your loved one in the future.
Don’t leave your child’s future to chance. Get a plan in writing that reflects your love and intentions. Contact me today and let’s discuss how to create a plan that truly protects your family.
Disclaimer: I am not an attorney, and this post does not constitute legal or financial advice. The information provided is for educational purposes only. Please consult a qualified attorney for advice specific to your family’s situation. Disclaimer
