Planning for Children with Disabilities
A child with a disability often needs more support, and the cost of that support can be considerable. Special needs planning addresses ABLE accounts, special needs trusts, government benefits coordination, and long-term care strategies.
The Cost of Support
Families raising a child with a disability face financial demands that most planning frameworks do not account for. Therapies, specialized education, adaptive equipment, and personal-care assistance can add up to tens of thousands of dollars per year, and those costs often continue well into adulthood.
At the same time, government programs like Supplemental Security Income and Medicaid impose strict asset and income limits. A well-intentioned inheritance or gift can inadvertently disqualify your child from the benefits they depend on, creating a planning trap that many families discover too late.
The key is to plan proactively, using legal and financial structures specifically designed to provide for a child with a disability without jeopardizing their access to public assistance.
Planning Tools Available
ABLE accounts, authorized under the Achieving a Better Life Experience Act, allow individuals with disabilities to save up to a specified annual limit without affecting their eligibility for means-tested benefits. Funds can be used for housing, education, transportation, health care, and other qualified expenses.
Special needs trusts, also known as supplemental needs trusts, hold assets for the benefit of a person with a disability while keeping those assets outside the individual's countable resources. A well-drafted trust can fund a lifetime of supplemental support, from vacations and electronics to additional therapy and personal-care attendants.
Beyond these tools, families should also consider life insurance structured to fund the trust, guardianship or conservatorship planning for when the child reaches adulthood, and a letter of intent that communicates your wishes to future caregivers and trustees.
How We Help Families
Our approach begins with understanding your child's unique needs, abilities, and goals. We then project the long-term cost of care and build a funding strategy that combines family resources, government benefits, and trust assets.
We coordinate with your estate-planning attorney to ensure that your will, trusts, and beneficiary designations work together. This is especially important in blended families or when multiple siblings are involved, where the risk of unintended consequences is highest.
Most importantly, we provide ongoing support. As laws change, as your child grows, and as your own financial situation evolves, we update the plan to make sure your family is always protected.
Schedule a confidential conversation about special needs planning for your family.
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