Cerebral Palsy and Estate Planning.
Cerebral Palsy
Cerebral Palsy
Cerebral Palsy
Cerebral Palsy
Cerebral Palsy
Cerebral Palsy
Cerebral Palsy
Cerebral Palsy
Cerebral Palsy
Cerebral Palsy
Cerebral Palsy
Cerebral Palsy

Cerebral Palsy and Estate PlanningCerebral PalsyCerebral PalsyCerebral Palsy

Life insurance is an important, and unfortunately often misunderstood, aspect of your family’s financial security. The primary purpose of life insurance is to meet the monetary needs that may develop if the insured person dies. If you are the primary breadwinner in your household and are currently supporting dependents with your wages, it is of the utmost importance that you life insurance provides adequate protection for your family in the event of your death. Many people purchase life insurance that is not suited for their particular needs, leaving their families to deal with severe financial burdens upon their death. Therefore, it is vital for you as the primary wage earner to understand the fundamental facts of life insurance.

Cerebral Palsy

Cerebral Palsy

Life insurance manages the financial risks of death. For most families, the foremost financial risk of death is that the death of the primary wage earner will strip dependents of their support. Therefore, life insurance coverage should be considered for the parent or parents whose earning power the child or children depend on.

 There are two basic types of life insurance plans: “term” life insurance, which just supplies insurance without any accumulation of cash value or capital; and other kinds, known as “whole life,” “universal life,” and “variable life,” which include a savings or investment element in addition to insurance. The latter varieties of insurance, sometimes referred to as “permanent insurance,” are essentially a joint package of investment and insurance.

 Oftentimes, people whose children are without disabilities use their life insurance to try to assure that their children’s education will be paid for in the event that the parent or parents died while the children complete their educational career. When the children are fully-grown and out of school, the need for this insurance disappears. Term life insurance is an affordable way to handle such a risk. Parents of children with cerebral palsy, however, must realize that the financial risk of their deaths will likely not decrease as their child ages. Because the premiums of a term life insurance policy increase rapidly as you age, it might be wise for parents of children with disabilities to consider a savings or investment plan to eventually replace their term life insurance, or simply consider whole or universal life insurance instead.

 After you have review your choices of life insurance and decided which form will best suit you and your families needs, it is important that you coordinate your insurance plan with your long-term estate plan. In other words, you must decided on the beneficiary, or the person who will receive the benefits of your life insurance in the event of your death. If you wish these benefits to go toward paying for your cerebral palsied child’s healthcare needs, you may want to designate a trustee who would, upon your death, inherit the life insurance benefits and use them in accordance with the guidelines set forth in your trust. If you designate your disabled child as the beneficiary, the inheritance may not only be subject to cost-of-care claims, but it also may interfere with government benefits eligibility.

 As with the many other aspects of life that are affected by having a disabled family member, if you are a parent of a child with cerebral palsy, it is essential that you pay due mind to your estate planning. Of course, you don’t want your long-term financial plans to end up hurting your child when you are gone. Therefore, it is imperative that you make carefully laid plans. Be sure to name the people who will look after your child when you die and to review your life insurance to be sure that the coverage is adequate for dealing with your child’s needs. Most importantly, parents need to make detailed wills so that their wishes are brought to fruition, and the devastating consequences of dying without a will are prevented.

 If your child has cerebral palsy, having no will at the time of your death can be devastating to his or her future. In most states, if a married person dies without a will, his or her children are entitled to equal portions of his or her assets at the time of death. If a single parent dies, the entire estate is left to be split up equally among the children. In either case, if you have a child with cerebral palsy and do not have a will, if you die, you child will receive assets in his or her name. As mentioned above, if your child has money in his or her name, it may interfere with government benefits eligibility as well as cost-of-care liability. In other words, your child will be left with not enough money to cover the cost of their healthcare, but too much to be eligible for government benefits. This would also be the case if you left any property to your child in his or her name, as the property would then add to the total value of their assets. To be sure that you don’t inadvertently make a mistake in your will that could be at a cost to your child’s future, be sure to consult a qualified lawyer to draft a will that is suitable for your family.

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