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Answering Your Letter Of Intent, Taxation And Life Insurance Questions

When parents and spouses think about putting money into trusts for their loved ones, one of the first concerns they have is with regard to how much money should be put in the trusts. The first question to consider is how much money your loved ones will require over the course of their lives. The second thing to consider is whether you should leave the same portion of your estate to each child, regardless of their individual needs. Finally, you need to consider what you can do to ensure there is enough money in the trust.

Whether you are worried about choosing the best way to fund the trust, naming the appropriate trustee or obtaining a letter of taxation, an experienced Texas attorney can help you find the legal counsel you need to protect your special-needs loved one. Livens & Reed, PLLC works with families throughout the Dallas-Fort Worth Metroplex to address matters relating to the letter of intent, taxation and life insurance for special-needs individuals.

Letter Of Intent

A letter of intent, also called a letter of instruction, is an important supplement to a special-needs trust. A letter of intent ensures that the trustee is someone who knows your loved one’s actual lifestyle. This includes being familiar with his or her functional abilities, routines, interests and particular likes and interests. In addition to describing your loved one, the letter of intent also identifies specific doctors, services and resources that can help ensure your loved one has the highest quality of life.


When a person passes away, his or her estate is subject to taxation. If your loved one’s special-needs trust is not created carefully, it could be taxed heavily and lose most of its resources. We will work with you to minimize the tax penalties, so your assets and your loved one’s trust is preserved.

Life Insurance

One solution to the challenge of whether there will be enough funds can be addressed by using life insurance. You could divide your estate equally among your children, but then also use life insurance to supplement the amount going to the supplemental needs trust for your child with special needs. The younger you are when you start, the more affordable your premiums will be. If you are married, the premiums can often be lowered if you purchase a policy that pays out only when the second parent dies.

Comprehensive Special-Needs Planning At All Stages Of The Process

If you are interested in learning more about the most effective way to use a special-needs trust for your loved one, we can help. It’s never too early or too late to begin planning. Contact the firm online, or call 800-569-2663 to schedule your free initial consultation with an experienced lawyer.

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