3. Consider the financial needs of your other children
It’s understandable to give extra attention and focus to a disabled child. But if you have other children, make sure your financial planning takes them into account, too. Consider ways you can help them prepare for their financial future, and potentially discuss ways they may be called on to help their sibling now and in the future. The more open conversations a family can have around financial planning and family expectations, the better.
4. Prepare for adulthood
It’s never too early to plan for your child’s journey into adulthood, so start envisioning what it will look like as soon as you can.
Is your child interested in, and able to attain, post-secondary education? Will they be able to work and earn a supplementary income? Will your child be able to live independently? If not, what types of living arrangements are available? Consider what estate planning you already have in place, such as a will or trust, for when you are no longer around to care for your child.
Consulting with a professional well-versed in special needs estate planning can also help you avoid potentially costly mistakes. They can also introduce you to programs like ABLE (Achieving a Better Life Experience), which offers tax-advantaged savings accounts to fund disability expenses.
5. Consider a Special Needs Trust (SNT)
Becoming the beneficiary of your assets can disqualify your child from receiving future assistance from government programs like Medicaid and Supplemental Security Income (SSI). The threshold is extremely low: as little as $2,000, or less, in your child’s name is disqualifying, depending on your state’s requirements.
Instead, parents can establish a Special Needs Trust (SNT) and leave their assets to the trust. That way, the child can benefit and still qualify for outside assistance. Parents of children with disabilities should also notify family members once the SNT is established. Keeping others aware of the SNT and its purpose can help everyone plan more efficiently — and any assets people may have planned to leave to your child can be left to the SNT instead.
When you understand the costs associated with raising a disabled child — and how to navigate them — you can plan a brighter financial future for the people you love.
Working with a financial professional can help make the path to your financial goals clearer. Learn about our approach to wealth planning.