Financial Planning for the Future of Your Special Needs Child

by guest author Jackie Waters

Planning for the future is always important, but especially so when you have a child with special needs. You never know what bumps lie in the road ahead, what costs you might incur, or how financial conditions might change along the way. It’s crucial to make sure that no matter what happens, your child will always be cared for and secure. When divorce is part of the picture, extra care is needed.

Here are a few things you’ll need to do when planning for your dependent child’s future.

1. Understand your federal assistance options

There’s a lot of jargon when it comes to filing for disability and social security, especially if it’s on another’s behalf. Make sure you completely understand all that your child is eligible for and entitled to. Some programs may vary from state to state, and there may be pending changes you’ll need to consider, so don’t be afraid to consult a social worker for guidance. Keep detailed records of disbursements and copies of receipts for whatever the money is spent on in an organized file, binder, or notebook. And don’t forget to backup your records to a cloud so you never lose them!

2. Plan for caregiving and school

Whether you’re the primary caregiver of your child or not, at some point you’re going to need some help. The sooner you plan for it, the better. Research daycares, schools, community centers, and therapy programs in your area that might be a good fit for your child. Even if you have a toddler, keeping an eye out for which high schools offer special education programs and talking to parents with enrolled students now can give you important insight throughout the years. Further, if private school begins to look like your best opportunity, it’s important to know the costs and start saving well in advance. If your child will need more specialized or around-the-clock care, research the average cost of trained caregivers in your area and start putting money aside.

3. Be prepared for home modifications

Your child’s pediatrician has probably talked to you about any necessary alterations you might need to make to your home, but be sure to consult them about future updates you might need as well. Larger or more durable equipment might be necessary as your child grows, or their condition might change and require different or additional modifications. Even if you don’t anticipate any other home updates anytime soon, set aside a little money for these purposes each month. You never know when an accident or medical crisis might change the circumstances, so give yourself a monetary cushion just in case.

4. Be mindful of property law and transfers

A lot of people think that having a will is all they need to ensure their property ends up in the hands of their children, but unfortunately it’s not an ironclad guarantee that your child will get to stay in their home should you pass unexpectedly. Wills can go through months, even years, of probate, which in a worst case scenario could keep your child out of their accessible home. Some families prefer to employ a transfer-on-death deed, which would automatically transfer the ownership of property to your child (or whomever you designate) upon your death. Keep in mind that active liens or mortgages will also be transferred to your child, so you’ll also need to devise a financial plan for helping your child pay off any leftover housing debts.

In your will, you should have a Special Needs Trust, which can improve the quality of life for your disabled child when they’re an adult while allowing them to keep eligibility for government assistance programs. You’ll need to write a letter of intent, name a trustee, fund the trust, and leave instructions for how the money should be invested.

5. Do it now.

The scariest part of financial planning is putting it off, so start now. Talk to an accountant or lawyer about which plans work best for your family’s individual needs. There are vital considerations when it comes to ensuring your dependent child’s future, so be thorough, organized, and well-prepared.

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Jackie Waters is a mother of four boys and lives on a farm in Oregon. She is passionate about providing a healthy and happy home for her family, and aims to provide advice for others on how to do the same with her site Hyper-Tidy.com.

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Call now if conflicts or changes in your family might make working with a family mediator a good idea. Call 703.864.2101 for a free consultation, or contact Dr. Virginia Colin at mediatorQ@gmail.com.