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Without a special needs child, estate and financial planning typically
have three major phases. The first phase is when the children are
small. Concerns most parents have at this stage center around a
catastrophic death in which minor children are left behind. In this
case, planning for guardians and trusts for children are critical
concerns. The second phase is when the children are grown and no
longer dependent upon the parents. An inheritance then becomes a
very nice addition to the children's estates, but is no longer critical.
The third phase is when the parents' estate is large enough that
estate taxes would be imposed, and tax planning is in order.
With a special needs child, however, estate and financial planning
are very different. Very often, a disabled child will be dependent
upon the parents or a caretaker/guardian throughout their lives.
The stage where they become independent is either delayed significantly,
or will never happen. As such, the concerns parents without special
needs kids have are extended for parents with children who have
special needs.
The lives and options for people with disabilities have undergone
many changes over the last 25 years. Less than a generation ago,
a disabled person really only had two choices: he or she could live
at home with family members assuming the responsibility for caretaking,
or be placed in an institutional setting. A generation of advocacy
and hard work by parents and others concerned with people with disabilities
has provided more options. Persistent parents have given special
needs kids the ability to free appropriate public education and
resources for care and increased independence.
Like most other things, however, proper care over the lifetime
of a disabled person does not happen by accident. Only through proper
planning can parents assure financial stability and proper caretaking
for their children after they are able to provide it themselves.
The reality today for families with disabled children are the fact
the there is an increasing population of people with disabilities,
which brings with it increased demand for services. Disabled people,
like all of us, are living longer lives, and are faced with increased
costs of long-term care, coupled with shrinking government resources.
Parents simply cannot assume that their child's siblings will desire
or be capable of providing care for the lifetime of their child.
Consequently, undertaking planning at the earliest stage possible
is critical.
Under these circumstances, the three most important issues to
plan for are proper estate planning, proper financial planning and
proper care planning. Each one, independent of the other will provide
only limited support.
Proper Estate Planning
Establishing wills and special needs trusts is critical. Inheritances
jeopardize many government benefits, including health care. Additionally,
having the proper legal documents for incapacity are critical. What
would happen if the parents became incapacitated? How would their
finances be handled, and how would the child be cared for?
Proper Financial Planning
Understanding exactly what the cost of care for your child would
be, and either developing a plan for funding those needs through
life insurance or savings is critical.
Proper Care Planning
Should something happen to the parent, it is critical to have
a plan in place, information at hand, and resources at the ready
to care for the child. Establishing a life care plan can be the
single most important component to care planning.
Having Good Advisors
Special needs planning requires the use of qualified professionals,
trained and with the experience, understanding and temperament necessary
to provide the kind of planning you need to have peace of mind.
Do-it-yourself planning can lead to a disaster.
About The Author:
Mark Albertson, JD, is an estate planning attorney focusing on
families with special needs kids. For a variety of articles, resources
and information, go to his website at ==> http://www.snplanning.com
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Article Source: ArticleAlley.com:
The Importance of Special Needs Planning
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