As caregivers of individuals with serious mental illness (SMI), we dedicate ourselves to providing love, support, and care to our loved ones. Amidst the daily challenges and uncertainties, it’s easy to overlook our own future and well-being. However, estate planning is not just about financial matters—it’s about ensuring the continuity of care and support for our loved ones with SMI, even after we’re no longer able to provide it ourselves. Let’s explore why estate planning is critical for caregivers and the key steps to take in this journey.

Why Estate Planning Matters:

Ensuring Continued Care: Estate planning allows caregivers to make arrangements for the ongoing care and support of their loved ones with SMI after they’re gone. Without proper planning, there’s a risk that important decisions regarding housing, medical care, and financial management may be left unresolved, leading to potential disruptions in care. According to a report by the National Alliance on Mental Illness (NAMI), individuals with SMI may face challenges in accessing appropriate housing and support services, making it essential for caregivers to plan for their long-term care needs (NAMI, 2021).

Protecting Financial Assets: Establishing special needs trusts and other financial instruments can safeguard the financial well-being of individuals with SMI while preserving their eligibility for government benefits such as Supplemental Security Income (SSI) and Medicaid. These trusts ensure that inheritances or other assets do not disqualify them from essential benefits. Research published in the Journal of the American Academy of Psychiatry and the Law highlights the importance of special needs trusts in protecting the assets of individuals with SMI and ensuring their continued eligibility for government assistance programs (Carr et al., 2013).

Clarifying Intentions: Creating a letter of intent provides caregivers with an opportunity to document their wishes, preferences, and instructions regarding the care and support of their loved ones with SMI. This document serves as a roadmap for future caregivers and ensures that important details are communicated effectively. A study published in the Journal of Gerontological Social Work found that letter of intent documents were valuable resources for caregivers of individuals with disabilities, providing clarity and guidance on caregiving responsibilities (Murray et al., 2015).

Key Steps in Estate Planning:

• Establish Special Needs Trusts: Special needs trusts are instrumental in protecting assets and ensuring continued eligibility for government benefits. Consult with a qualified attorney to create a trust that meets the unique needs of your loved one with SMI.
• Create a Letter of Intent: Detail your wishes, preferences, and instructions regarding the care and support of your loved one with SMI in a letter of intent. Include information about their medical history, daily routines, preferences for care providers, and any other pertinent details.
• Document Precious Keepsakes: Identify and document your loved one’s precious keepsakes and sentimental belongings. Clearly outline who you wish to inherit these items and how they should be distributed.
• Explore Pooled Trusts: Pooled trusts are managed by nonprofit organizations and offer an alternative to individual special needs trusts. Consider joining a pooled trust to ensure the proper management of assets and continued eligibility for government benefits.
• Communicate with Family: Openly discuss your estate planning decisions with family members to ensure transparency and understanding. Identify individuals who may be willing and able to step in and provide support for your loved one after you’re gone.

Estate planning is a critical aspect of caregiving for individuals with serious mental illness. By taking proactive steps to protect their future, caregivers can ensure that their loved ones receive the care, support, and financial security they need long after they’re gone. Don’t wait until it’s too late—start your estate planning journey today and secure peace of mind for yourself and your loved ones. In my book (Schizophrenia and Other Related Disorders. Handbook For Caretakers), I have a template for the Letter of Intent, along with guidance around pooled trusts, special need trusts, and more.