Planning for "Special Needs" Dependents

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Maybe you have a "special needs" child or know of a family member who does. If so, ask yourself what will happen to that adolescent or adult handicapped individual when you are no longer available to help him/her, both financially or emotionally. Will your state resources be adequate? Will your child be institutionalized?

Families that include a member with a physical or mental disability have special needs to consider when organizing their financial and estate planning. Long term solutions need to be considered if you should die and no longer can provide for your loved ones.

** Who will care for your childs basic needs, food, clothing and living arrangements?
** Who will provide emotional support?
** Have you provided for adequate financial resources for other family members or caregivers?

A Special Needs Trust may be the best solution. It will provide security, while allowing him or her to qualify for government benefits. The Special Needs Trust can be established and funded during the parents life, or established by will (a testamentary trust) to receive assets from your estate.

Typical assets placed in a Special Needs Trust include a life insurance policy, the death benefit from a life insurance policy or other income producing assets such as stocks and bonds. Insurance is the most widely used funding method as it does not require a trustee to manage a stock or bond portfolio and provides for immediate access to assets.

The first step is to review your financial/legal situation and make sure that your special needs child is taken care of and protected. For insurance planning, contact QuoteBroker.

Posted by

Vincent Kody
Insurance Company Insider


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Cedric (Ced) Reynolds
Covina, CA
(909) 263-4569

Vincent,  extremely thought provoking post  I don't have special needs children but I do have a wife who is totally disabled so I can relate.  People with special needs children definitely don't want to put their heads in the sand.

Great post,


Feb 29, 2008 05:40 AM #1
Lynn Krogseng
Keller Williams Premier Partners - Vancouver, WA

My husband and I finally got around to getting our wills filled out a couple of years ago (we had durable powers of attorney and health directives, no will).  I feel much better now that we've taken care of establishing the special needs trust.  Our son has severe autism and we are still struggling with what to do for his future living situation.  I am amazed at how many of my acquaintances that have special needs children don't have wills or special needs trusts set up.

I hope your blog moves someone to stop procrastinating, and just do it.

Oct 27, 2008 07:25 PM #2
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