Why Clients Should be Extra Frugal with Their Special Needs Children
Special children will require special planning.
One of the risks that a family with a special needs child may have is that a well-meaning loved one could accidentally disqualify the child from receiving government benefits.
For example, Joe is 22 years old and suffered a birth defect that left him unable to walk or have full use of his hands. He lives in subsidized housing. He is able to make ends meet. Sometimes his parents help him with money, but Joe also receives a monthly Supplemental Security Income payment of $800.
Joe’s parents created a first party Special Needs Trust (SNT) to provide for his care and needs. Recently Joe’s Aunt Mary died. Unbeknownst to Joe’s parents, Mary left Joe $60,000.
Her thoughtful gesture ended up creating serious problems for Joe. He suddenly had more than $2,000 in the bank, and as a result he was disqualified from receiving aid. This is a real problem for a special needs family and it needs vigilant advisors.
