Planning For Special Needs Children

Over 5% of children in school arediagnosed with a disability. Taking care of these children can be challengingand will require a lot of planning. Parents should explain to advisors whatkind of life they envision for their child. These answers will help the advisorbuild a plan to fit the child’s needs.

Disabled people with less than, $2000 inassets are eligible for Medicaid and Social Security’s Supplemental SecurityIncome program. Advisors might want to make sure that an impaired person who isno longer receiving care from his parents has no assets in his name. Evenwealthy families should reconsider leaving impaired children listed asbeneficiaries. Even with millions of dollars, it might not cover out- of -pocket health care costs. The key for advisors is to focus on eligibility ofthe disabled child. 

See Martha White, Special Needs Clients: ‘Retirement for 3’, Financial Planning Invested in Advisors,  Jul. 1, 2013.