Nearly one-fifth of all Americans have some kind of disability and 25% of those affected are school-age children that will likely have their disabilities for the remainder of their lives. On top of the everyday care that is provided to those with special needs, caregivers need to consider the financial burden that comes with.
At Woodhull Capital Advisors, LLC, we believe that creating a financial plan will help reduce the burden and allow your loved one to live a full, meaningful life. That means enjoying security, independence, and the ability to do what they want with their lives.
With life planning for special needs, a sound plan usually consists of two steps:
- Developing a plan for your loved one with special needs
- Implementing that plan into a larger family plan to ensure that all your family members’ needs are met
To make sure that both steps are met, we’ll cover five crucial steps to set up a secure, financial future for both your loved one and the rest of your family.
Estimate your loved one’s lifetime financial support.
Through our comprehensive assessment, we’ll get a ballpark estimate on what the care of your loved one will cost over the course of their life. We’ll cover the expected income source and expenses that you’re likely to encounter in depth. Furthermore, we’ll take a look at what life for your loved one should be like even after you’re gone.
Arrange your family’s finances properly.
This is done to ensure that SSI, Medicaid, and state disability services can be attained. By properly structuring your family’s finances, we’ll be able to ensure that you get all the most financial help possible for your loved one.
Create a plan to fund and manage a special needs trust.
We’ll dive deep and consider how to find the trust, how much you should look to invest, special payment circumstances for the beneficiary, and more while we help tackle the pesky paperwork such as tax returns and record-keeping. A special needs trust requires a delicate balance between risk and return to ensure you’re loved one is taken care of throughout the course of their life.
Verify that all assets, insurance benefits, gifts, etc. go into the loved one’s trust and not to them directly.
While this may seem obvious, it’s often overlooked and can cause trouble in the long run. If assets, insurance benefits, gifts, etc. go into the disabled person’s name, accessing the funds to pay for expenses could prove to be more challenging than necessary. By verifying that all assets go into their trust, you can assign trusted family and friends to use the trust in a predetermined plan that has your loved one’s best interests in mind.
Follow the path of estate and insurance benefits.
Following the path of estate and insurance benefits of the parents verifies that the plan executes as it should in the case of death. This is the final step to make sure that everything falls into place as it should. You can never be too careful with your loved one’s future.
A meaningful and happy future is a financially secure future. Schedule a free 30-minute consultation with us today to learn more about creating a safe, secure future for your loved one with special needs.