Today's webinar focused on Children with Special Needs and Divorce: What a Texas Parent Needs to Know. We are very thankful to have had Attorney Mike Day and Special Needs Divorce Coach Mary Ann Hughes presenting.
One key takeaway that came up was regarding child support-- what happens when a child with a disability receives child support payments after age 18? With a child with special needs, it is common for child support to continue beyond age 18, and it is vital that the money goes into a First Party Special Needs Trust. If you are in the process of getting a divorce, it is important to ask your attorney to set this up correctly. If you have already gone through the divorce, you can ask the court to have that money redirected.
If child support goes straight to your child, it will be counted as income to them and impact their SSI and Medicaid benefits. However, a trust is one place where they can have money without any effect on their benefits. A first party trust is required because the money belongs to the child, and a Medicaid payback clause will need to be included because Medicaid can claim reimbursement from a first party trust.
If you have more questions about this, please call our office at 281-690-1177 or check out our YouTube channel to watch this webinar: https://www.youtube.com/@ConsolidatedPlanningGroup