​Last year I did a document set for a friend’s son who was going to be living abroad for a couple of years. There was a power of attorney and health care documents. There was no occasion to use the documents for the first year but recently, the son had his ATM card chewed up and his parents were able to use the power of attorney to get him a new card. Then, when taxes were due, they realized that their son had neglected to get some important tax documents sent on from his work. They were able to use the power of attorney to request and receive the tax documents.

​Last week, I was in math class with my nephew “T”, who has autism. The math teacher was giving him some one-to-one help with a math concept that he was struggling with. The teacher was sitting right in front of T and T kept clearing his throat in a loudly manner and belching. I could see that the teacher was getting a little annoyed by T’s behavior. This made me think about care plans in special needs estate planning. 

You see, T has something called a verbal tic and that is why he clears his throat and belches. I spent about 3 years telling T to have better manners and to not clear his throat and to excuse himself to another location when he needed to belch. Then, I discovered that his behavior is related to what is known as a verbal tic, and it is not something that he can control. I realized that I would never have told a person with a more well-known tic, a facial tic, for example, to stop twitching but that was essentially what I was asking T to do.
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A care plan is an important component of a comprehensive special needs estate plan but it is often overlooked. Parents of a child with special needs should set up a care plan that explains their child’s disability and how it impacts daily life. They should include anything that will help their child receive appropriate care in their absence. They can explain triggers, medical conditions, sensory issues and anything that goes into the regular care of their child. Imagine what a difference it makes to a caregiver and a child with special needs, if the caregiver understands what it takes to meet the child’s needs. ​

Most parents of children with special needs want their child to be as independent as possible. As their child gets older and reaches the age of majority, usually 18 years old, they may not be ready to accept all the responsibilities of an adult. I encourage parents to consider what vulnerabilities their child may have if they do not have a power of attorney, health care documents or a guardianship (either limited or full, depending on the circumstances) in place. If the child is vulnerable to being taken advantage of financially, a power of attorney or a conservatorship might be appropriate. 

I recently had a client contact me who had filed for conservatorship for her child a few years before. She explained that a friend had given her daughter a ride to the bank where her daughter applied for a $6,000 loan that was granted to her. Fortunately, the friend appeared to have no ulterior motives. Because the parents had a conservatorship in place, the bank reversed the loan. Getting into serious debt, especially when the individual is not a wage-earner or has minimal wage earning, can quickly become a burden to already burdened families. ​

Essentially, a family needs to begin considering a trust plan when they have kids and they own a house. But does that apply to owning a trailer, a modular home, or even a condo within a multi-unit complex? Yes, it does. Any "real property" meaning any property which transfers by recording a deed, even if it doesn't sit on its own land or shares space with someone else's property is at risk of probate if it is not properly planned for. As we know, the probate process can be expensive, can take a long time, and can easily be disputed. When the only real property is a trailer worth $20,000-100,000 those costs can really eat away at the total value of a small estate. Not to mention that often trailers or mobile homes are built in communities where they rent the ground they sit on. Even when you own the structure, there may be rent due on the land as part of HOA or community dues or by contract. When property transfers, it is common that contractual terms or HOA dues may change for the new owner because they don't have any rights to enforce the terms enjoyed by the previous owners. This can be frustrating, but it can also devalue someone's interest in a mobile home.

When a person creates a revocable trust for themselves, federal law allows them to transfer their residence into the trust. This helps to avoid the probate process because it can then transfer directly instead of through the court process. By transferring your interest into a trust, you also can sometimes avoid the changes in contractual terms from a community or the re-valuation of property taxes on a home because the ownership can possibly still be kept in trust rather than transferred. Since terms weren't renegotiated when the home went into the trust (and indeed could not be) those terms stay the same afterwards as long as the ownership stays the same. Depending on the circumstances this could avoid substantial increases in rent or in property taxes.

While having a small estate consisting of a modest home or even a trailer or mobile home may seem like a reason to avoid going through the time and expense of planning, it could actually be the opposite. It could save what little value is there and it can often avoid family disputes over what is left behind. One of our most difficult planning sessions was with a family who's parents had lived in a trailer their whole lives. When mom and dad decided to plan their estate, they invited all five children to be present so that they all knew what was to happen and that there would be no fighting after they died. We saw a glimpse that day of how horrible things could have been without a proper plan. There in their parent's trailer in front of them and their attorney, the children shouted at each other, placed blame, and pointed fingers- all trying to convince mom and dad that they deserved more than their siblings. It was unbelievable! And all this over a trailer worth maybe a total of $40,000 and a few personal belongings.

So, what is the moral of the story?  Nobody is exempt from the need to plan, no matter how small or modest your home might be. A little bit of planning can go a long way in keeping the peace and in maintaining what value you have even when it doesn't seem like there is much to go around. If you need to plan for your mobile home or trailer, We can help! Contact us at 801-477-1570. Let us Earn Your Family's Trust!