Child with Special Needs Turns 18 Years Old

Financial Planning Situation

Rick and Sharon have been caring for their child with special needs, Martha. As a child, she was diagnosed of cerebral palsy. Now she is 17 years old and will soon turn 18.

Here are the key questions they have:

• How to navigate exploring all the government benefits she could be eligible for?
• How can we set aside assets for her future in a tax efficient manner without jeopardizing our own retirement?
• We get overwhelmed by the different providers who are involved and their jargon. We need someone by our side who can help us make sense of all these.

These client stories are based on hypothetical, fictional situations.

Planning Process

As Martha approaches the age of 18, it is important to plan for her transition into adulthood and ensure her financial well-being. We can provide valuable assistance in creating a comprehensive plan that addresses her unique needs and helps you navigate the complexities of special needs planning. Below are some of the key aspects we can help with:

• Government Benefits: We can help you understand the government benefits available to individuals with special needs, such as Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), and Medicaid. We can guide you through the application process and explain eligibility criteria.
• Guardianship and Conservatorship: If appropriate, we can guide you through the process of obtaining guardianship or conservatorship, which allows you to make legal decisions on behalf of your child once they turn 18.
• Special Needs Trusts: We can help you set up a special needs trust to ensure that your child's financial assets are managed properly without jeopardizing their eligibility for government benefits. These trusts can provide for their supplemental needs, such as education, medical expenses, and quality of life enhancements.
• Budgeting and Financial Planning: Creating a budget that considers your child's ongoing needs and expenses is crucial. We can help you estimate costs, create a budget, and plan for potential future expenses.
• Legal and Estate Planning: Collaborating with your attorney, we can help you establish or update your estate planning documents, including wills and trusts, to ensure your child's financial security and care after your passing.
• Government Programs: Beyond basic benefits, we can educate you about other government programs, waivers, and services available to individuals with special needs, including vocational training and employment support.
• Education and Employment Planning: As your child transitions to adulthood, we can help you explore educational and vocational options that align with their abilities and interests.
• Coordination with Professionals: We work in collaboration with other professionals, such as attorneys, special needs consultants, and social workers, to create a comprehensive plan for your child's future.
• Life Care Planning: We can help you develop a comprehensive life care plan that addresses your child's medical, financial, and quality-of-life needs over their lifetime.
• Beneficiary Designations: We can assist you in reviewing and updating beneficiary designations on life insurance policies, retirement accounts, and other financial assets to ensure that they align with your special needs planning goals.
• Understanding Tax Implications: Special needs planning may have tax implications, and we can help you navigate these complexities and minimize tax liabilities.
• Advocacy and Support: Beyond the financial aspects, we can provide emotional support and advocacy as you navigate the challenges of securing a fulfilling and secure future for your child.

Choosing a financial planner who specializes in special needs planning is crucial, as this area requires a deep understanding of government benefits, legal considerations, and the unique needs of individuals with disabilities. Working with us can provide you with peace of mind and a solid foundation for your child's financial future.