Financial Planning for Special Needs Children
Fortunately, there is now better care for special needs children, so these children are living longer. Parents are not prepared for the long-term costs of caring for their children’s needs while trying to handle their own health and retirement needs.
If your family has a child with special needs or disabilities, Merrill Lynch Wealth Management has a free online special needs calculator to help such your family evaluate the situation for financial planning. This special needs calculator can analyze information about income, expenses, and life expectancy to determine how much will be needed to continue caring for the child after a parent or guardian retires. The calculator includes modifications for inflation.
Planning is even more important with special needs children because you can potentially protect funds with a special needs trust. The calculator can be a good starting point for deciding which planning route to take.
See Ann Carrins, Financial Planning Calculators for Those With Special Needs, The New York Times, Jan. 11, 2012.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.