What is Special Needs Planning?
Often, a lot of time and attention is paid to the more traditional pathways of financial planning. When can I retire? How do I put my kids through college? How can I make sure my estate is handled properly when I am no longer here? However, for families with children and beneficiaries with special needs and considerations, comprehensive planning takes on a new level of thought. This is where special needs planning and, more specifically, a Chartered Special Needs Consultant can be of help.
Typically, what triggers the notion of special needs planning is if a family member is diagnosed with either a behavioral or physiological challenge that would require or start disability benefits or services. There could also be a situation where a particular need indicates that they may need to be under care for an extended period.
The primary puzzle to solve when it comes to special needs planning
The biggest challenge to special needs planning, or the largest puzzle to solve, is how to make sure financial planning does not reduce or eliminate any of those benefits being utilized by the family member with the triggering diagnosis. These challenges include ensuring that the family member does not have over $2,000 in assets and a few other guidelines. The most common benefits to be preserved are payments made by SSI (Supplemental Security Income), SSDI (Social Security Disability Income), and state-provided health and/or income benefits through a state’s Medicaid program.
Some of the top considerations addressed in special needs planning:
How do we financially preserve and maintain the quality of life for our family member if one or both parents (for example) pass away or simply no longer able to provide care?
Who will take care of our family members when we are no longer here?
What tools can be used for the benefit of the family member to work around the $2000 asset maximum?
How does the special needs planning impact the other family members or beneficiaries?
How often do we need to update or refresh our plan?
I have heard of a Special Needs Trust (SNT). Is that something I automatically need to establish?
Are there tools that can help with special needs financial planning?
When we look at special needs planning, each of these questions (and more) are discussed and addressed.
Perhaps we can use tools like ABLE accounts, Letter of Intent, or 1st or 3rd party trusts (like a Special Needs Trust) to solve some of these challenges. Just like any other form of financial planning, there is NO one size fits all approach. Every family, every situation, every set of values and beliefs contribute to the success of special needs planning. Some plans can be basic and straightforward. Others may require a team of professionals, including financial, medical, legal, and educational, to work correctly.
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Who can I talk to about special needs planning and what is a Chartered Special Needs Consultant (ChSNC)?
Planners that hold the ChSNC™ (Chartered Special Needs Consultant) designation have been specifically educated and are continuously trained to be the most helpful for this type of planning. The entire world of benefits, programs, and planning seems to change continually, and planners with the ChSNC designation can be a meaningful ongoing resource.
Do you have more questions about special needs financial planning?
There can be quite a bit more to special needs planning than what is mentioned above. Please feel free to reach out to me with any questions.