A Definitive Guide to Special Needs Financial Planning

By Steve Millstein via Iris.xyz

Parents with special needs children know how expensive it is to raise their child. They know what care they can get, what financial aid they can get and what funded therapies and courses their children are entitled to. In short, they know the day to day costs of living with a child who has special needs.

But what about after the parents die? What then? The child will still need day to day care but who will provide it? Who will pay for it? And who will make the important decisions regarding the child’s healthcare?

There are many fears and stresses surrounding parents in this situation and it can seem daunting but if you prepare now then it leaves more time to enjoy the time you do have with your children.

Below are 10 ideas to help plan for the future for a special needs child.

1. Set up a Special Needs Trust Fund

Supplemental Security Income (or SSI) is a monthly stipend that is available to children with special needs and Medicaid offers health insurance, however, to qualify for these benefits, the applicant (i.e, your child) must not have any assets worth more than $2,000 in their own name.

But, when you die, all of your estate and assets will be passed on to your children. Chances are that this will push them over the threshold and make the ineligible for SSI or Medicaid. This is where a Special Needs trust comes in.

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