October 2023 Special Needs Living Magazine

Financial Planning for a Child with Special Needs SKYLIGHT FINANCIAL

BY SARAH SMITH

Financial planning for a child with special needs can be overwhelming, but the right help and early preparation can make a big difference for you and your child’s future. With 12+ years of experience, Skylight Financial Planner Katy Bryan, PhD, CEPA, ChSNC, has worked with many families who have children with special needs/ disabilities. We recently sat down with her to talk about the best financial planning practices for our families.

It is crucial to know what special needs planning is and how it differs from more traditional planning. Typically, a family plans for retirement, primary or secondary education, paying off debt, long-term disability, long-term care, and life events that may happen, Katy explained. However, families of a child with special needs must plan for their own lifetime needs, in addition to their child’s lifetime needs, preparing two long-term care plans.

Katy’s solution is thinking through seven key questions, giving families confidence in their financial future. These questions are designed to think through during the lifetime of a child with special needs. Some questions are good to know when the child is a baby while other questions may not be answered until they are closer to adulthood.

1. Is my child registered with the County Disability Board? Do I qualify for any benefits/waivers? Registering allows you to receive information from the county board on what new federal changes are being made, benefits that may be important to apply for early on, and any programs you may be eligible for.

2. If something happened to me and I could no longer take care of my child, who would physically and emotionally be able to take care of my child in the way that I would want them to be taken care of?

We all have family and friends who we think would take care of our children, but have you ever asked them? Using a letter of intent, which talks about your day-to-day life and your child, may help open that conversation and make sure they are ready emotionally, physically, and financially if they are ever needed.

3. What financial resources would my family need to maintain the lifestyle, medical costs, therapies, etc., that they currently receive if I could no longer provide these?

Determining the cost of care is different for every family. Talking through what is important to your family with a financial professional can help you determine what amount may be needed, what options are available to fund that need, and government programs are available that can help ease those financial needs. Have you looked into the ABLE accounts to see if they are a fit for your family or talked with a special needs estate planner on whether a special needs trust is needed? ABLE accounts and trusts are tools that allow your child to have assets in their name or under the trust and still receive government benefits.

It is crucial to know what special needs planning is and how it differs from more traditional planning.

Katy’s solution is thinking through seven key questions, giving families confidence in their financial future.

Every child is unique in their abilities. Some families want their child to live with them for as long as possible, others want their child to have some independence with support, and some need 24-hour care with a lot of support. Many parents forget that when their child turns 22, if they are not working and the parent still is, that they need to find care for their child. Thinking through what you want their life to look like and researching early helps with this critical transition.

4. Who will manage my child’s financial funds if I cannot manage them due to death or disability, and how do I make sure those funds are set aside specifically for my child with special needs? Some friends and family are great with kids, and others are great with numbers, and some are great with both. Determining who will manage your child’s funds is important—you want to be sure the funds are used in the way you would like them to be used and don’t get lost due to divorce, death, or misuse of funds.

5. Are my retirement plan and LongTerm Care plan in good order?

When you plan for yourself, you are planning for your children. If you haven’t saved enough to live on through retirement or don’t know the best way to take social security, you may not be able to leave funds necessary for your child’s care. This can resort to using funds that you had intended to be reserved for your child. For your own long-term care. Planning for the unknown is essential for all parties involved.

6. What lifestyle do I want for my child as they grow into adulthood? Will they be able to work? Have social experiences? Live on their own?

Every child is unique in their abilities. Some families want their child to live with them for as long as possible, others want their child to have some independence with support, and some need 24-hour care with a lot of support. Many parents forget that when their child turns 22, if they are not working and the parent still is, that they need to find care for their child. Thinking through what you want their life to look like and researching early helps with this critical transition.

7. Where will my child live as they become an adult? Where will they live as I age or if I need Long-Term Care? This question has become increasingly predominant in planning. There are more options today where adults can live than there were 10 years ago. With new hybrid housing models, farm communities, and other small group home models, there is more opportunity and choice. However, the availability is often limited due to upfront costs or a long waiting list. Again, research early and get on a list early.

Katy can be reached at 216-297-5810 or at kbryan@financialguide.com. CRN202304-281804