Securing the Future: Navigating Special Needs Financial Planning

Planning for the financial future of a child with intellectual and/or developmental disabilities is not just a financial necessity but a crucial step in securing their well-being and happiness. This journey can be daunting, but with the right knowledge and resources, families can ensure a secure and fulfilling future for their loved ones. This article provides a general overview of the key considerations for parents beginning their journey in special needs financial planning. Here is why it is so important for families to get a head start:

1. Ensuring Long-Term Support

Planning for long-term care is one of the most critical aspects of financial planning for families with. It involves making arrangements for your child’s future needs, such as medical care, housing, daily living support, and personal assistance. Every individual has requirements for support. A financial plan allows you to tailor support services to your child’s specific needs, preferences, and life goals.

2. Protecting Eligibility for Government Benefits

Many individuals with disabilities rely on government benefits such as Medicaid and Supplemental Security Income (SSI) to cover essential living and medical expenses. However, these benefits have strict eligibility requirements, particularly regarding income and assets.

Creating a financial plan that includes ways to manage assets through Special Needs Trusts (SNTs) and ABLE accounts and appropriately structuring inheritances is key to ensuring financial security without jeopardizing their eligibility for government benefits. An SNT can be funded by third-party contributions, such as gifts or inheritances, without affecting SSI eligibility. On the other hand, ABLE accounts offer tax advantages and can be used for qualified disability expenses. You can learn more about California Able accounts on the CalABLE website.

3. Planning for Transitions

As your child grows, they will face several significant transitions, such as moving from school to adulthood, seeking employment, or changing living arrangements. Special needs financial planning prepares for these transitions. For example, this can involve allocating funds early for vocational training and skill development. Services such as Jay Nolan’s Employment Services and Soft Skills Training Program, and the Uniquely Abled Academy can help enhance your child’s independence and employability in young adulthood. These services prepare neurodiverse individuals for the workforce, enhancing their independence and confidence.

4. Planning for Future Housing Needs

Everyone needs a place to call home. Supported Living Services help with providing the support necessary for someone to live in a home of their own. But securing that home can be a challenge. Financial planning is critical to ensure your child has a safe and comfortable living environment, whether that means paying rent or securing real estate property. Families must also take into consideration how to maintain adequate funding for utilities, groceries, and other daily living expenses.

5. Tips for Effective Financial Planning

Here are a few helpful tips to remember during your financial planning journey.

• Start Early: Starting early is the single most important thing you can do. Getting a head start and making sure all necessary arrangements are in place helps mitigate risk in case of unexpected problems. Consider starting with a simple savings plan and gradually include more complex instruments like trusts as your understanding grows.
• Review Regularly: Make sure you are regularly reviewing your financial plans and legal documents to ensure they remain up-to-date with changing laws and circumstances. Set a date to do an annual reviews of your financial plan, and keep abreast of any changes in legislation that might affect your child’s benefits.
• Engage Professionals: This process can be daunting, but there are lots of resources available to help. Trained professionals such as financial advisors, attorneys, and benefits counselors are there for you to navigate the complexities of the financial planning process.

5. Where to Go to Get Help

There are many resources available (both paid and free of charge) that specialize in assisting families with special needs financial planning. Here are a few options to consider:

• Community Resources: There are plenty of advocacy groups, government agencies, and non-profit organizations that specialize in providing free or reduced cost services to help families navigate the process. Reach out to your nearest Regional Center for a list of resources local to your area.
• Educational Webinars: Gaspar Tovmasyan and Mariam Azolyan MS. regularly partner with law firms and organize webinars to educate families on various aspects of financial planning, including estate planning, trust management, and guardianship issues. Follow them on social media so you don’t miss their next webinar. You can also book a free consultation with them for financial planning advice.
• Expert Legal Support: Professional help from a certified law office is necessary for setting up trusts, guardianship, and inheritances. For families living in the San Fernando Valley, the Law Offices of Alice A. Salvo specialize in financial planning and legal services for families with developmental disabilities. Their expertise includes the creation of special needs trusts and guardianship arrangements. Contact their law office for a consultation.

Conclusion

Effective financial planning is a crucial step in ensuring a secure and fulfilling future for individuals with developmental disabilities. By understanding the available tools and resources and taking proactive steps, such as Special Needs Trusts and government benefits, families can make informed decisions that protect their loved ones and ensure that their loved ones are well-cared for now and in the future.