Special Circumstances - Dependents with special needs



For parents of special needs children, the long-term care and financial security of their children is a major concern. Ensuring a special needs child will be taken care of after the parents' deaths is a top priority.


Planning issues

  • Government benefits - Following the death of their parents, special needs individuals may qualify for certain government programs.
    • Supplementary Security Income (SSI) - Pays monthly benefit to disabled individuals with less than $2,000 in assets and an inability to earn more than a minimal income.
    • Medicaid - Individuals who qualify for SSI automatically are eligible for Medicaid coverage for health care costs.
  • Special Needs Trust - A type of trust set up to help provide for a special needs individual after the parents' deaths. If not properly drafted, may make the special needs individual ineligible for government benefits. Consultation with a lawyer experienced in special needs trusts is required. Special needs trusts typically are funded with life insurance, real estate, retirement plans.
Monetary windfalls


Related Articles
  1. Budgeting

    How to Help Clients Plan for a Special Needs Child

    A special needs child demands extra diligence in planning. Here's a guide to best practices.
  2. Personal Finance

    Special Trusts For Special Needs

    If you or someone you love has a disability, these trusts can help ease the cost of care.
  3. Personal Finance

    Surprising Uses for Trust Funds

    Here are five common situations where a trust fund makes financial sense.
  4. Professionals

    Special Needs Trust

    Special Needs Trust
  5. Insurance

    Use Life Insurance to Help Those With a Disability

    Why and how to use permanent life insurance to help provide for a family member with a disability or special needs
  6. Economics

    Understanding Specialization

    Specialization is when a person, business, or region focuses their productive efforts on a smaller subset of a larger system for a competitive advantage.
  7. Retirement

    Helping Aging Parents Manage Their Money

    Old age can make dealing with finances difficult. Find out how you can help aging parents manage their finances and estates.
  8. Professionals

    Special Circumstances

    Special Circumstances
  9. Financial Advisors

    Top Financial Planning Issues for Older Parents

    Clients who have children later in life present an opportunity for advisors. Here are the key the financial planning issues that need to be addressed.
  10. Your Clients

    Long-Term Care: How Medicaid Stacks Up

    Clients who think Medicaid is a good option for long-term care usually don't know the rules that come with the process of applying for it.
RELATED TERMS
  1. Special Needs Trust

    A legal arrangement and fiduciary relationship that allows a ...
  2. Special Needs Child

    Children who have been determined to require special attention ...
  3. Bypass Trust

    An estate-planning device used to pass down assets after death ...
  4. Special Situation

    Particular circumstances involving a security that would compel ...
  5. Children’s Health Insurance Program ...

    A medical coverage source for individuals under age 19 whose ...
  6. Pour-Over Will

    A will established by an individual who has already taken the ...
RELATED FAQS
  1. Will 529A plans replace special needs trusts?

    Understand the difference between a 529A plan and a special needs trust. Learn whether or not 529A plans will replace special ... Read Answer >>
  2. What is the relationship between specialization of labor and opportunity cost?

    Learn the basic meaning of specialization of labor and opportunity cost, how they are applied in economic theory and the ... Read Answer >>
  3. Are Social Security survivor benefits for children considered taxable income?

    Learn why receiving Social Security survivor benefits on behalf of children does not affect income tax for a surviving parent ... Read Answer >>
  4. What are the economic impacts of specialization?

    Read about the economic impacts of specialization and the division of labor, and see why individuals, firms and even countries ... Read Answer >>
  5. What are specialization and comparative advantage in international trade?

    Take a closer look at David Ricardo's revolutionary insight about specialization and comparative advantage and the benefits ... Read Answer >>
  6. How is maintenance of standard of living for survivors accomplished in estate planning?

    Understand what elements of an estate plan can assist in creating certainty for survivors that allows them to maintain their ... Read Answer >>
Hot Definitions
  1. Goodwill

    An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company ...
  2. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  3. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  4. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center