The Importance of Special Needs Planning

Today's Guest Blogger is Gordon Homes, Special Needs Financial Planner and Parent with MetLife Center for Special Needs Planning to tell us more about the importance of special needs planning...

Caring for a dependent with special needs takes special planning.
Often we put off the task of planning as it can be overwhelming. This article will outline some of the steps you, with the assistance of a special needs financial planner and qualified attorney, should take to make their future more secure.

Letter of Intent

While the Letter of Intent is not a legal document, it is designed to serve as a roadmap for anyone involved with your child’s situation to utilize in understanding your child’s needs and your wishes for their future. This document is a working document, and serves as an ever changing caregiver’s guide, with everything from contact information for doctors,therapists, educators, government benefit offices, and providers, to medications, routines, schedules, food likes/dislikes, diet, etc.

Your Will

Addressing legalissues is a crucial step in planning for the future. Prepare a will if you don’t already have one or update your existing will to reflect what you want for your child. How do you want your estate to be distributed; who will be the guardian of your children? It may be especially important if you want to
limit assets going directly to a child with special needs. Without a will, generally state law will distribute assets to your children, including children with special needs.

Special Needs Trusts

Under current law, any inheritance of more than $2,000 ($1,500 limit for Indiana Medicaid) may disqualify individuals with disabilities from most federal needs based
assistance. A properly drafted Third Party Special Needs Trust (one set up and funded by a parent for example);however, may offer a means of protecting your child’s eligibility for these important benefits. Special needs trusts have evolved over the years, so an existing one may need to be updated. A special needs trust can typically be funded at any time with a gift or inheritance. If your child has or is in the process of receiving an inheritance, settlement, or back payment a First Party Special Needs Trust (one funded with the disabled individual’s money) may be needed. Having the correct type of special needs trust and engaging an attorney specializing in this area of the law is critical.

Guardian/Trustee

The guardian assumes responsibility for your child in the event of your death. Usually though not always, a family member will serve. There are two overarching questions the proposed guardian will be seeking to answer. How do I do this, and how will I pay for this? The planning process can help answer some of these types of
questions. The trustee oversees the assets in the trust. The guardian and
trustee can be the same or different people, each with a role in managing your
child, the money and the investments but all being involved and contributing to
their overall well being. Look at the options and decide what’s best for you and your family.

Financial

Sometimes sufficient financial resources to meet needs may not be available. The death of one or both parents can jeopardize your child’s financial future and quality of life. There are a variety of funding options for Special Needs Trusts. Discuss these options with a special needs financial planner and your attorney. What type of life do you envision for your child with special needs? How much money
will he/she need?

Gordon Homes, Special Needs Financial Planner and Parent
MetLife Center for Special Needs Planning
www.gordonhomes.metlife.com
(317)567-2005

MetLife and its representatives do not provide tax or
legal advice. Please consult your tax advisor or attorney for information regarding your own specific situation. Metropolitan Life Insurance Company (MLIC), New York, NY 10166. Securities products and investment advisorybservices offered by MetLife Securities, Inc. (MSI)(member FINRA/SIPC) a registered investment advisor. 545 Metro
Place So. Suite 175, Dublin, OH 43017. 614-792-1463. MLIC and MSI are
MetLife Companies. L1211229081[exp1112][IN]