Families with special needs children are aware of the extra care and consideration that their children require. When the time comes to consider estate planning, families need to focus on structuring a plan that will ensure that the special needs child will be cared for throughout his or her life. Life insurance trusts are among the best options for Philadelphia families who are concerned about continuing care needs.
Families can purchase life insurance with a value that will ensure that a special needs child is properly cared for after the loss of both parents. The trust is then structured so that the trust itself owns the life insurance policy. That effectively removes the life insurance from the parent's taxable estate. Once the person named on the policy dies, the trust is also the beneficiary of the life insurance proceeds.