The Importance of Special Needs Planning

Copyright (c) 2008 Mark AlbertsonThe reality today for families with disabled children are
Without a special needs child, estate and financialthe fact the there is an increasing population of people
planning typically have three major phases. The firstwith disabilities, which brings with it increased demand
phase is when the children are small. Concerns mostfor services. Disabled people, like all of us, are living
parents have at this stage center around alonger lives, and are faced with increased costs of
catastrophic death in which minor children are leftlong-term care, coupled with shrinking government
behind. In this case, planning for guardians and trustsresources. Parents simply cannot assume that their
for children are critical concerns. The second phase ischild's siblings will desire or be capable of providing
when the children are grown and no longer dependentcare for the lifetime of their child. Consequently,
upon the parents. An inheritance then becomes a veryundertaking planning at the earliest stage possible is
nice addition to the children's estates, but is no longercritical.
critical. The third phase is when the parents' estate isUnder these circumstances, the three most important
large enough that estate taxes would be imposed, andissues to plan for are proper estate planning, proper
tax planning is in order.financial planning and proper care planning. Each one,
With a special needs child, however, estate andindependent of the other will provide only limited
financial planning are very different. Very often, asupport.
disabled child will be dependent upon the parents or aProper Estate Planning
caretaker/guardian throughout their lives. The stageEstablishing wills and special needs trusts is critical.
where they become independent is either delayedInheritances jeopardize many government benefits,
significantly, or will never happen. As such, theincluding health care. Additionally, having the proper legal
concerns parents without special needs kids have aredocuments for incapacity are critical. What would
extended for parents with children who have specialhappen if the parents became incapacitated? How
needs.would their finances be handled, and how would the
The lives and options for people with disabilities havechild be cared for?
undergone many changes over the last 25 years. LessProper Financial Planning
than a generation ago, a disabled person really onlyUnderstanding exactly what the cost of care for your
had two choices: he or she could live at home withchild would be, and either developing a plan for funding
family members assuming the responsibility forthose needs through life insurance or savings is critical.
caretaking, or be placed in an institutional setting. AProper Care Planning
generation of advocacy and hard work by parentsShould something happen to the parent, it is critical to
and others concerned with people with disabilities hashave a plan in place, information at hand, and
provided more options. Persistent parents have givenresources at the ready to care for the child.
special needs kids the ability to free appropriate publicEstablishing a life care plan can be the single most
education and resources for care and increasedimportant component to care planning.
independence.Having Good Advisors
Like most other things, however, proper care over theSpecial needs planning requires the use of qualified
lifetime of a disabled person does not happen byprofessionals, trained and with the experience,
accident. Only through proper planning can parentsunderstanding and temperament necessary to provide
assure financial stability and proper caretaking for theirthe kind of planning you need to have peace of mind.
children after they are able to provide it themselves.Do-it-yourself planning can lead to a disaster.