Four reasons your special needs child will never be neglected

Special needs parents worry.  I say it a lot because it’s true.  They worry about the day to day, they worry about money for therapies and home-2939310_1280equipment, they worry about school resources, they worry about finding good people to help care for their child, they worry about the future, and most of all, in the back of their mind where they shove the worries they don’t want to have to think about, they worry about their child being abandoned, neglected, and abused.  They worry about the very thing that happened to 35 poor residents of a Chicago-area residential home this week.  You can read the story here.  But the upshot is that a worst case scenario happened and the owners of this residence simply locked the doors and left the residents alone.  Abandoned, neglected and abused in the purest sense of those words.

The good news is that you have the power to eliminate that risk for your child if you plan properly.  Even though your child will probably outlive you, you can still take care of your child long after you have left this earth.  If you do what you need to do, there is every reason to believe that your child will never be one of the forgotten.

Imagine yourself having just completed all the the Four Keys to Special Needs Planning.  Here are the four reasons your special needs child will never be neglected:

  1. People are involved with your child. You have created a community of caregivers who have a way to stay updated on your child, have been asked to participate in your child’s life in whatever way they like, have been given specific permission to communicate with the “official” guardian and trustee for your child, and, most importantly, have been made to feel like they are  a part of the group who is responsible for caring for your child.
  2. Money is available for your child. You have made sure that your child will remain eligible for government benefits and that all other financial resources that may be available for your child are found, maximized, and properly managed.
  3. You have left instructions and details. You have left all the information anyone might need to be able to both care for you child and also to make important decisions about their life and care in a way that is important to you and that takes into account all your child’s strengths and preferences.  You have made sure that this information is accessible and available at short notice whenever needed.
  4. The force of law is on your side.  You have been to a lawyer and have gotten all the paperwork, court orders, and legal mumbo jumbo you need to ensure that your plans are carried out the way you intended.

It’s a big project.  It will take you some time and it will take some money to complete this project, but it is within your reach.   If you haven’t gotten our Special Needs Planning Blueprint yet, click here to request your free copy – Blueprint.

Getting smart with leaving an inheritance to young children

lettle girl with dadAn often overlooked benefit of writing a will and putting together a well thought out estate plan is that you can pass on your values to your children, even if you’re not still physically present.  The most direct way to do this is with what lawyers call the “contingent minors’ trust.”

Even a little can be a lot

If you were to die when your children are still under the age of 18, the law won’t let them have their inheritance directly, but will require it to be managed and directed by an adult until the child is 18.  Unless you say otherwise, as soon as your child blows out those candles on their 18th birthday, they will be handed the whole caboodle to do with as they please.  Even if you don’t think you have very much to leave to anyone, its likely you at least have a house with a small amount of equity, maybe a small employer provided life insurance policy, and maybe a car or two to sell.  Even a very modest estate can wind up leaving $20,000 or so to your kids, and if you don’t think an 18 year old should be left unsupervised with $20,000, then you need to set up a minor’s trust.

What is a trust?

A trust is a way of owning property that gives the right to use the money to one person and the right to manage the money to another. In the case of a contingent minor’s trust, your will would say that if your children are under the age of 18 when you die, you want their share of the inheritance to be put into a trust for their benefit, to be managed by a person that you choose.

And then things get interesting.  By creating a trust, you can direct how and when the money is used.  This is how you are able to pass on more than just things, but also your values and priorities to your children.  With the inheritance in a trust account, the age at which the child is given the money can be delayed to any age you choose, and the trustee can be directed to use the money according to your priorities.


Parent writes their will when the children are very young and parent has no idea what the child will be interested in as an adult nor does the parent have any idea how responsible the child is likely to be.  The trust is written to maximize protection and also cover a broad array of possible expenses.  As an example, the trust says that the trustee can spend money to pay for higher education expenses, vocational training, or a down payment on a home.  The trustee will remain in control until the child reaches age 25, at which time 1/2 the remaining money will be distributed to the child, and the remaining amount at the age of 30.


Parent revises will when the children are in their late teens.  Parent has been very successful in business and has an estate of about two million, meaning the children will receive a fairly large inheritance.  Parent is concerned that children learn how to support themselves and manage money, so the trust is written to promote those goals.  As an example, the trust says that the trustee may pay for higher education expenses as long as progress is being made toward a degree, or may pay for startup costs of a business with a well designed business plan.  The trust may not pay ordinary living expenses more than one year after graduation.  The child may become co-trustee at the age of 26 in order to learn money management skills with the guidance of the older trustee.

Your values in action

Both of these examples show the parent basically offering support to their child in the same way that they would if they were alive.  If the amount of the trust is large, it can continue to age 30, 35, or older.  Or if you believe in learning by doing, you can distribute parts of the trust directly to the child to learn or fail on their own. The trustee can be given the discretion to use the money for education and living expenses only, or to pay for travel and sightseeing or other life experiences besides formal education.  In other words, your own priorities as a parent can be built into the trust.

To learn more about using trusts in your estate plan, send us a note or give us a call.  We’re always happy to do short consults to help you decide if its time to bite the bullet and do your estate plan.



Today is the anniversary of the invention of the electric light bulb, a monumental moment in the development of modern life.  Personally, I think the invention of the disposable paper nose tissue was the single greatest invention for the improvement of quality of life, but there are no documentaries about it’s origins, so instead I will offer you this 1922 look at a day in the life of Thomas Edison.

Not all your “property” is yours

confused ladyDid you know that some of what you think you own might not actually be yours?

I help people decide what they want to do with their property at their death. I write documents that ensure that their wishes can be carried out.  As part of my job, I ask people about the property they own.  And what I know because of this, is that most people don’t have clue about online property.

It’s important to know what property is yours.  That sounds like an unnecessary statement to make, but we actually have a lot of property that we believe is ours, but that actually is not.  And that can cause you problems. If not now, it can cause problems later on for the people you thought you left the property to at your death.

Almost everyone has digital property. Online accounts for social media, blogs, websites, email are all types of digital property, as well as any files you place on those accounts.  But some of that “property” is not really yours.  Take, for example, a facebook account. Most American adults have a facebook account, and many of us use it as a repository for photographs, as well as an ad hoc diary of our life.  But the account is not actually owned by you.  It is actually owned by Facebook, and they retain nearly all rights to determine if and how you get to keep the account and the files housed there.  The practical effect of this is that when you have personally meaningful files stored there, most commonly photographs, you risk losing access to all of them if you do not have backups on your own computer or storage device, such as a flashdrive, hard disk, or CD.

Cloud storage companies are used by many people for their valuable photo and text files.  Some act simply as a storage service for files that you retain ownership of.  Others may simply be a location to display files but the company has no obligation to make those files accessible to you.

It’s complicated.  You must be absolutely sure you know what you are doing when you upload files to the internet, or you must be absolutely sure that you have those files backed up on storage devices within your possession.

Carelessness with your digital property might mean you actually lose your property completely, or that your loved ones cannot get access to it after your death.

If you have questions about your digital property and how to protect it, call the Austin Texas office of Pamela Parker.

Sarah Silverman’s Scary ICU Story

Comedian Sarah Silverman announced today (read her facebook post here) that she’s spent the last week in the hospital in intensive care after going to her doctor about a sore throat.  It turns out she had a potentially life threatening bacterial infection.  Her medical team knocked her out during the many days of treatment, so she was completely, and suddenly without warning, out of commission.  She calls herself “insanely lucky” to be alive.

Preparing for short term disability isn’t something most people think about, but it’s immensely important.  If you find yourself unexpectedly out of commission like Silverman did, without advance planning documents like HIPAA releases and medical and durable powers of attorney, your friends and family might have a really difficult time getting information about your condition, and on the much worse end of the spectrum, you might find that your rent or mortgage check didn’t get turned in and you now have either big late fees or, even worse, an eviction notice to deal with.

Just listen to the morning traffic report and its long list of accidents and you’ll know that many people are likely finding themselves in this vulnerable position.  You, however, can take care of this right now while you’re thinking about.  Call your local friendly lawyer and ask about getting your death and disability planning done now.


So Prince didn’t have a will. Does it really matter?

As always when a celebrity dies, a few days after news of the death you will find mentions of whether or not there was a will.  Why?  Who cares?  And beyond the public’s curiosity, does it even matter if there was a will?

Yes, there are a lot of reasons why it matters, and here’s a few of those reasons.

  • The public loves dirt.  Wills are filed with the court and become public.  So if a celebrity has a secret lover, or is disinheriting a child, or wants a long time employee to inherit everything, the public gets to know.  They want a window into the private life of high profile people, and a will often gives them that.  Which is precisely why most celebrities use trusts in addition to a will to protect their personal affairs.  Trusts are not available to the public, and the particulars of who gets what stay private.
  • We want to know if the celebrity was smart or not.  Anyone with an estate over about six million dollars has the potential to pay federal estate taxes, a tax that is in addition to ordinary income taxes.  Estate planning allows people with large estate to minimize the amount of estate tax paid when they die, in much the same way itemizing your tax returns can save on income taxes over simply taking the standard deduction.  It’s perfectly legal and quite prudent to do what you can to minimize the estate tax owed, but if no will or any other planning has been done, the estate may pay large amounts to the federal government that could have gone to the heirs. When a celebrity dies without a will, it almost certainly means that “too much” will be paid in taxes.
  • Lives are complicated, and not everyone you love is related by blood.  When there is no will, the only people who can inherit are those related by blood (or adoption in most cases).  Which blood relations inherit depends on the individual state laws, but no one who is not related can inherit from someone who is not a blood relation or a spouse at the time of the death.  Celebrities with large estates have the means to spread their love around, and they often do . . . but the court cannot award anyone, even those who were clearly close and clearly financially dependent on a celebrity, anything not provided for in a will or trust.
  • Are we going to remember the person, or the mess?  The old saying “death is a part of life” doesn’t just mean that all life includes death.  It also means that all the circumstances surrounding your own death become part of your life story.  If your death without a will, or with a poorly written will, means that your name is forever after mentioned with a tag line that goes something like ” . . . and s/he left such a mess when s/he died,” then you have obscured the good things about your life for eternity.  Who among us can think of Anna Nicole Smith without also thinking about the long and bizarre court battles over her estate?  Who among us doesn’t have at least one relative who died without a will and caused all sorts of stress and problems for the family?

It’s too early to know if Prince’s life and work will be marred by ongoing stories about his estate, but by failing to write a will he certainly did not protect his legacy the way he protected his music during his long career.  Even we less purple humans can protect what we have and those we love.

In case of parents’ death . . .

It’s not often that stories are written about the exciting world of estate planning.

Tonight’s episode of the television show “Blackish” revolves around the parents’ realization that they haven’t, but should, name guardians for their children in case of their own deaths.  The kids are now pre-teens and tweens, so the parents decide they need to get moving on this.  Good for them!

But then it devolves into arguments over whose family would make the better caretakers, and whose family shouldn’t even be allowed near the kids, and we see some of the stress that leads parents to put this off until the need for it disappears. Fortunately, there are ways around this.  Watch this short youtube video I made a couple of years ago for ideas on what to do when you don’t know what to do.

If you need to do this important planning, give my office a call to set up an appointment to get it done.

And if you decide to pretend like you are immortal, you can listen to this song I found on Youtube while looking for my guardianship video.

Are disability benefits taxable?

I have a good friend who works at the IRS, and every year I get emails from her for about a week before April 15 reminding to get my taxes done.  It’s not that she thinks I’ll forget, she’s just so excited about Tax Day she can’t help herself!

Frankly, I don’t get nearly as excited about it as she does, but I do like to get them in on time and I really like to do them correctly.  So here’s the answer to the big question many families have when a member is receiving SSI benefits: do you have to file taxes?

SSI benefits, which are available to individuals over 18 who have a developmental disability and have never worked or who make only a very small income, (and some children under 18 whose families have lower incomes), are not taxable by the federal government.  If your child receives SSI benefits and has no other income, then it is not necessary to file a tax return.

However, if your child has other income – including social security benefits through a parent, then some of the income may be taxable and you may need to file a return.

For more information, you can check out IRS Publication 907.

Drop Everything! Where’s the POA??

stickman-310590_1280You wrote a will, completed a power of attorney (POA), and you review yearly to see if updates need to be made.  You are doing well and your family will be in good shape if something happens to you.

Or will they be?

Just as important as having those documents, is making sure your executor and agents can find them when they are needed.  If you’re in the hospital and your POA is needed to conduct important business for you, would your agent be able to find it?  Maybe you even gave your agent a copy of it and they have it in their possession – do they know where they put it?  Can they lay their hands on it quickly when they need it?

It may be years after you make these documents before they are needed.   Remembering where you put a piece of paper years ago can be a lot harder than you think.  Especially if the house has been rearranged, new furniture bought, maybe even a move . . . and then no one knows where the folder with mom’s POA has wound up.

I recommend a once a year document drill.  Pick a day – maybe your birthday – to lay hands on your will and other documents.  And if you have given copies to other family members, call them up and ask them to lay hands on the papers.  Simply reciting where they are kept is not enough. Tell them to go physically pick them up and look at them, then report back to you that they’ve done it.

They will thank you when the time comes to use those documents.

Death and disability planning is an ongoing process

arrow-945271_640 Life does not stand still, but your estate plan will if you don’t actively keep up with it. Planning is not a one time event.

If you have a current will or full estate plan, you know the feeling of relief that hits as soon as you sign that last paper.  It feels great to have your death and disability planning done. But as important as that is, it is just as important to review your documents regularly and make sure they still do what you need them to do.  Sometimes it’s obvious your will or other documents need to be changed, but some things that might trigger the need for revisions aren’t as obvious.

Major Life Changes


A marriage, a divorce, and a new child are all times when the lawyer should be called and updates made to your documents.  But you should also discuss whether changes are needed when you have a drastic change in income, or move to another state, or when you or a close family member develop a chronic health problem or disability.  All of these major life changes might require changes to your plan and should be discussed with your attorney.

Many Purchases Should Trigger Updates

Wills and trusts lawyers help you plan for what you own at the time you are planning, as well as any reasonaly likely changes.  But if you acquire or lose major property after you create your will, your plan may need to be updated. For example of you gain or lose a large life insurance policy or pension fund, or if you transfer assets from cash or stocks or real estate into another type of asset, there may be changes needed in your will to make sure that all property is distributed appropriately.


Annual Review

You may not need to make changes to your plan every year, but you should review your plan each year to be sure.  A simple read through of your documents may jog your memory as to things you wanted or needed to change.  Death and disability planning is intended to protect you and to carry out your wishes after death, and it is more likely to do so if you review regularly and keep it up to date.