If you own a business or plan to start one, your future business interests can play an important role in supporting your child with special needs. Careful estate planning can allow you to use your business as a long-term resource, helping to provide stability, care and financial support for your child well into adulthood.
With a thoughtful strategy in place, your business interests can become part of an effective plan that protects your child’s future without disrupting vital government benefits.
Putting a plan in place
One of the most effective tools for families in this situation is a special needs trust. This type of trust holds assets for the benefit of a person with special needs without making them ineligible for programs like Supplemental Security Income (SSI) or Medicaid. If you have a business, you can arrange for shares or a portion of the business profits to be directed into this kind of trust. This effort can help to create a steady source of support without giving your child direct ownership of assets that might interfere with benefit eligibility.
Additionally, if you hope to pass your business on eventually to someone else, it’s important to think about whom you will choose. You may decide to keep the business in the family or name a trusted partner or manager to take it over. You can also use your estate plan to set conditions, such as ensuring that a portion of the business income always goes to your child’s special needs trust.
Another option is to build a succession plan that allows your child to benefit from the business without needing to manage it directly. For example, if your child enjoys being involved in certain parts of the business—like packaging products or helping in an office environment—you can create a structure that includes supportive employment. This can give your child a sense of purpose and connection while protecting their legal and financial interests.
A business is more than a source of income. It can be part of your legacy. With the right estate planning tools, your hard work today can help meet your child’s needs tomorrow.
