Raising a child with special needs comes with immeasurable love and responsibility—and one of the most important, yet often overwhelming, responsibilities is financial planning. For families navigating this journey, the stakes are high: ensuring that your loved one continues to live with dignity, support, and stability, even beyond when you're no longer there to advocate for them.
That’s where comprehensive special needs financial planning becomes essential.
Why Specialized Planning Matters
Children with disabilities often require lifelong support—whether through medical care, therapy, education, or assisted living services. While government programs like Medicaid and Supplemental Security Income (SSI) offer a financial foundation, they come with strict income and asset limits. A well-intentioned inheritance or cash gift can accidentally disqualify a child from these benefits.
Thoughtful planning ensures that families can provide long-term financial support without compromising eligibility for essential services.
Key Tools for Financial Planning
- Special Needs Trusts (SNTs)
A cornerstone of special needs planning, SNTs allow assets to be held and used for a child’s benefit without affecting their access to public benefits. Funds from the trust can be used for expenses not covered by government aid, such as educational programs, therapy, transportation, or recreational activities.
There are two common types:- First-party SNTs (funded with the child’s assets, such as a legal settlement)
- Third-party SNTs (funded by parents or family members, often as part of an estate plan)
- ABLE Accounts
An ABLE account (Achieving a Better Life Experience) allows individuals with disabilities to save money tax-free for qualified expenses, including housing, healthcare, and education. In 2025, the contribution limit is $18,000 per year. Unlike traditional savings, these accounts don’t count against asset limits for SSI or Medicaid. - Life Insurance for Long-Term Funding
Parents often consider life insurance—especially second-to-die policies—to fund special needs trusts. This ensures that financial support continues beyond their lifetime, without placing the burden on other family members. - Continuity of Care Planning
A legal or financial plan isn’t complete without personal guidance. A “Continuity of Care” plan documents your child’s daily routines, medical needs, preferences, and values. It equips future guardians and trustees with the knowledge to provide consistent, compassionate care in your absence. - Guardianship and Legal Authority
As your child reaches adulthood, families may need to consider guardianship or supported decision-making agreements to help manage financial, medical, or legal matters. This step is crucial in protecting your child while promoting as much independence as possible.
A Team That Understands Your Journey
The Special Needs Planning Center was created to walk alongside families in this journey—combining financial planning with a deeply personal understanding of what it means to care for a loved one with special needs.
If you’ve been putting off planning or aren’t sure whether your current strategy meets your child’s long-term needs, we’re here to help. It’s never too early—or too late—to create a plan that reflects your hopes and provides peace of mind.
With the right guidance and tools, you can build a secure, meaningful future for the one who matters most. Schedule a complimentary consultation today.
The Special Needs Planning Center, CommunityAmerica Credit Union, and CommunityAmerica Wealth Management are not tax or legal advisors. Please speak with your tax and legal professionals regarding your specific situation.
