Families raising children with disabilities face unique financial challenges that demand a personalized strategy that addresses complexities with both assurance and compassion. Working with a CERTIFIED FINANCIAL PLANNER® professional who understands these unique circumstances can help you develop strategies for government benefits, insurance coverage and long-term planning essentials tailored to your family’s specific needs. It can also remove some of the uncertainty and fear experienced by families with special needs. By following these tips, families can establish a secure financial foundation and ensure a high quality of life for their loved ones.
Establish a Care Team
Work with your CFP® professional to ensure you have assembled a team of professionals and support networks that includes the appropriate medical professionals, therapists, social workers and legal advisors with an eye to special needs. Include family members, particularly those involved in daily care or decision-making. Each member should clearly understand their roles and responsibilities. A comprehensive care team ensures that all aspects of the individual’s well-being are managed, alleviating the burden on any one family member, and providing a robust support network. Whenever possible, it’s important to involve the individual with disabilities in planning and decision-making to promote their independence and self-determination.
Set Up a Special Needs Trust
Identify a specialized attorney who can assist you in setting up a special needs trust. This involves selecting a trustee, outlining the trust’s terms and funding it with assets that won’t affect the individual’s eligibility for critical governmental benefits. Planning a special needs trust safeguards designated assets intended for the individual’s care, ensuring they can still receive benefits such as Medicaid and Supplemental Security Income (SSI), provides financial security and guarantees funds are used appropriately for the special need person. Open communication within the family while establishing the special needs trust is crucial. Regular planning meetings can ensure everyone understands the plan and their role, particularly siblings who may serve as trustees or hold power of attorney.
Purchase Appropriate Health and Life Insurance Policies
Your CFP® professional can help you identify the appropriate type of insurance policies for your unique situation and, if necessary, locate an insurance agent with expertise in special needs planning. Prioritize health insurance policies that cover essential and ongoing medical care. When considering life insurance, consider policies designed to fund a special needs trust upon the policyholder’s death. These policies should be customized to address specific medical requirements and future care expenses, including providing for the long-term care of the individual with special needs without disrupting eligibility for public benefits.
Establish a Savings Plan for Long-Term Care
Long-term care can be costly, underscoring the importance of a dedicated savings plan to ensure funds are available when needed. Consider setting up an ABLE account, which offers tax-advantaged savings specifically designed for individuals with special needs. Work with your CFP® professional to estimate future care costs, establish regular funding and adjust contributions based on changing needs and circumstances.
Addressing the financial needs of families raising children with special needs involves careful planning, consideration of unique challenges and the implementation of comprehensive strategies. Taking these steps and working with a knowledgeable CFP® professional not only eases financial burdens but also brings peace of mind, knowing that your family is well-prepared for the future and can provide a high quality of life for your loved one. Find your CFP® professional today.
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