The financial rules are different for the 20 million American families with special needs kids.
Parents of such kids can’t just name them in their wills.
A story on dailyfinance.com says the key to helping special needs kids is Medicaid.
But to qualify, the child cannot have assets worth more than $2,000.
Even if they are qualified, government programs like Medicaid and Supplemental Security Income will cover only a fraction of the $2 million to $4 million it will take to provide a lifetime of care.
So that is why experts recommend parents set up a special needs trust, which can hold an unlimited amount of assets for a disabled individual.
And make sure not to name the children as beneficiaries of IRAs or insurance programs.
Figuring out where these kids will live when they are adults is also a challenge. Choices include residential programs in group homes.
If you have questions about special needs planning, feel free to call us for a consultation at (626) 696-3145.
