I’ve been supporting my mentally ill granddaughter — now I have terminal cancer. How do I ensure she’s taken care of when I’m gone?

For example, let’s say Elana has been financially supporting her granddaughter Alyson for years. Alyson cannot live independently because of her mental health issues, nor can she hold a job. Unfortunately, Elana now has terminal cancer and she wants to make sure Alyson is provided for, but Elana doesn’t know how to do that.

The good news is that experts say Elana has plenty of options to provide for Alyson’s needs for decades to come, assuming Elana has assets to leave behind.

Elana needs a durable power of attorney

Elana is focused on how her death will affect Alyson, but before she plans for what happens after she’s gone, she must plan for what could happen as her health worsens.

“In this situation, with a terminal illness, it’s important to have a durable power of attorney to authorize a trusted person who can handle everything for you should you become incapacitated before you pass,” Fred Taylor, the founding attorney of Bush & Taylor, PC, told Moneywise.

Without a durable power of attorney, there might be conflict over who will manage Elana’s estate and there may be no one with immediate authority to pay Alyson’s bills if Elana’s cancer progresses to the point where she is incapacitated.

Elana can avoid this by naming someone she trusts to access her accounts, pay her bills and continue providing for Alyson as instructed.

A trust is essential for after death

While Elana must make plans for incapacity and end-of-life care, a post-death plan is also essential. And this likely starts with a trust.

“First and foremost, a special needs trust (SNT) should be established,” Barry E. Janay, Esq., Founder and Owner of The Law Office of Barry E. Janay, PC, told Moneywise.

Colleen Carcone, an estate planning attorney and founder of Carcone Law, PLLC., agrees that a trust is important, although she told Moneywise that “the type of trust that is appropriate will depend on the extent of your grandchild’s illness and if she is currently receiving any means-tested benefits, such as Medicaid or SSI.”

A SNT is likely the right choice if Alyson is receiving means-tested benefits, such as Medicaid or Supplemental Security Income (SSI), because “a supplemental needs trust will allow distributions for goods or services that will enhance the beneficiary’s quality of life while maintaining eligibility for means-tested benefits,” said Carcone.

If Alyson doesn’t qualify for income-capped benefits like SSI and Medicaid, Carcone still believes a trust matters, but it doesn’t necessarily need to be a special needs trust.

“If your grandchild does not qualify for means-tested benefits, leaving assets to a spendthrift or discretionary trust for her benefit would protect the funds and allow distributions for the support you have been providing,” said Carcone.