Auntie, as you know, adequate financial planning for families that have children with special needs is absolutely critical. A Financial Planner can assist families with evaluating the long-term needs of minor and adult children with disabilities.
Financial Planners help families to anticipate and plan for events that could impact the child in the future such as: the current costs of caring for the child:
(1) a loss or reduction of funding from the parents due to parent's passing or job loss;
(2) a change in entitlement status of the child, or
(3) a change or elimination of the entitlement program itself; or
(4) disqualification from receiving benefits as a result of inheritance or gifts.
The Answer: Special Needs Trust
It can improve a disabled adult's quality of life without endangering eligibility for government programs.
Here's where you, Savvy Auntie, may want to come in.....
Name a trustee. This is often the most difficult part of creating a special-needs trust. Most planners recommend tapping a trusted family member, maybe that cool Auntie that has been there since day one, who knows Sara's favorite movie or Danny's favorite song. The Trustee will likely know more about the beneficiary's needs and won't charge a fee. If no family member is available, you may need to retain an attorney to act as trustee. Or try a community foundation. Many areas have foundations of volunteers — often other parents of disabled children — who will oversee the trust
You can see more informational articles and resources regarding Special Needs Trust at www.jlbfinancialinc.com