About one in six children between ages three and 17 has a developmental disability, according to the Centers for Disease Control and Prevention. But a University of Illinois study found that fewer than half of parents of disabled children are actively planning for their children’s future.
For these special needs individuals, it’s critical that parents engage in some detailed financial planning.
Maintain eligibility for government assistance
One important principle is to provide enough money to meet the disabled individual’s needs throughout their lives, without accidentally endangering their eligibility for Medicaid, Supplemental Security Income (SSI) and other means-tested government assistance programs.
Medicaid and SSI have strict eligibility caps on assets and income. If the disabled individual’s income or assets rise over a certain threshold (which, for Medicaid, varies by state), they may lose access to paid health insurance, job coaching, supported employment programs, group housing, vocational assistance, transportation assistance, and personal care services. When Your Heirs Have Special Needs