As a caregiver of someone with special needs, you know that giving them the care and support they deserve is a lifelong commitment. That’s why it makes sense to have a financial strategy in place now – so you can rest a bit easier knowing you’ve taken steps to help ensure your loved one will receive a lifetime of support and care.
Consider a special needs trust. One element of a good financial strategy is a special needs trust (SNT). It helps to ensure your loved one with special needs will not be financially dependent on a future caregiver or guardian. Also, assets held by the trust are not counted when determining your loved one’s eligibility for current and future government benefits. The SNT can be funded with proceeds from a life insurance policy, assets on hand, funds bequeathed through a will or financial rewards from a lawsuit.
Now’s the time to draft a will. While no one likes thinking about wills, they’re especially important for people with special needs. The will can name a Guardian for your loved one. Make your wishes clear!
Look into government benefits. Your child may qualify for Medicaid, Supplemental Security Income (SSI), or Social Security Disability Insurance (SSDI). Every little bit can help, especially when your loved one is on his or her own. Visit www.ssa.gov to learn more.
Create a letter of intent. Although the letter of intent isn’t part of a financial strategy, it is an important part of your overall life care plan. A letter of intent is a regularly updated written document that provides details about your loved one’s personal, educational, medical, and social life. The letter of intent includes everything a temporary or permanent potential caretaker will need to know.
Get the tax benefits you deserve now. From deductions for medical expenses to credits for care and education, there are numerous strategies you can benefit from today that could help you keep more of your money in your pocket.
Maybe your loved one with special needs lives with you, or they’re making their own way out in the world. In either case, special needs financial planning helps ensure your wishes and desires for your loved one are fulfilled—even after you’re gone.
These materials are not intended to and cannot be used to avoid tax penalties and they were prepared to support the promotion or marketing of the matters addressed in this document. Each taxpayer should seek advice from an independent tax advisor.
This information is general in nature and not comprehensive, the applicable laws change frequently and the strategies suggested may not be suitable for everyone. Clients should seek advice from their tax and legal advisors regarding their individual situation.
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Investment advisory services are offered through Voya Financial Advisors, Inc., member SIPC.
Neither Voya nor its affiliated companies provide tax or legal advice. Please consult with your tax and legal advisors regarding your individual situation.