Special needs planning involves developing a detailed financial and legal strategy to provide continuous support for individuals with disabilities, especially those who will require assistance throughout their lives. The main aim is to ensure that these individuals have a good quality of life while still being eligible for government benefits and help. These benefits often cover crucial services like healthcare, housing, and financial support. The goal of special needs planning is to manage finances in a way that doesn’t put these benefits at risk.
This type of planning includes several important parts:
1. Financial Planning: This step includes creating structures like trusts and investment accounts to offer ongoing financial help for individuals with disabilities. These setups are designed to supplement government benefits without causing the person to lose those benefits.
2. Estate Planning: This part involves carefully planning what happens to a person’s assets when they pass away. For individuals with disabilities, it might mean creating a special trust to manage their assets. This ensures that these assets can be used to improve their quality of life without affecting their eligibility for government programs like Medicaid and Supplemental Security Income (SSI). Estate planning also includes legal documents like wills, powers of attorney, and healthcare directives to respect their wishes and care needs.
3. Guardianship and Decision-Making: Special needs planning is an ongoing process. While turning 18 is a sign of adulthood for most people, it’s different for those with special needs. This stage might involve assigning guardians or advocates to make decisions on their behalf, especially if they can’t make decisions on their own.
4. Life Care Plan: This is a thorough plan for someone’s entire life. It covers medical treatments, therapies, finances, and emotional support needed as they grow older. Think of it as a guide to make sure they have everything they need for their health and happiness.
It’s important to note that special needs planning is a complex area that requires a deep understanding of both legal and financial considerations. An SNP (Special Needs Plan) involves creating a life care plan, hiring professional trustees, training yourself to manage a trust for your child, and even training your future trustees. A well-crafted SNP involves a team of bona fide professionals and individuals. In addition to working with an attorney, I often advise families to work closely with a Special Needs Financial Planner. A financial planner can create future projections based on your current household income, expenses, and savings, and future needs and wants. A financial planner can also help you make prudent investment and financial decisions, especially during the upcoming expected market downturn and future market turmoil. I encourage you to create your own team. Special needs planning can be challenging, but with professional help and guidance, you can overcome most, if not all hurdles.