Today we will continue with our two-part blog on basic financial planning for parents of special needs children, which is part of a larger series meant to serve as a basic introduction to estate planning for special needs parents.
In our last blog, we introduced you to common terms and concepts associated with special needs financial planning.
Today, we will cover a wide range of frequently asked questions that many special needs parents have about how to raise and provide for the needs of their disabled children. Please keep in mind that this blog does not constitute legal advice for your specific situation. Everyone’s circumstances are unique, and it is important that you consult with an experienced New Jersey special needs trust attorney like Christine Matus who can help you figure out what steps you need to take to properly plan and prepare for the care and comfort of your child. Contact us today at (732) 785-4453 to discuss special needs child estate planning options and help build a secure future for your child.
Common Questions on Financial Planning for Special Needs Families
Financial planning for special needs families often involves addressing specific concerns to secure a stable future. Families may have questions about setting up trusts, managing benefits, and long-term care. Understanding these aspects can help parents make informed decisions that support their loved ones. In this section, we’ll explore some of the most common questions families have when planning for the financial needs of a special needs family member.
What financial considerations should I keep in mind if I have both a special needs child and a non-disabled child?
When you have both a special needs child and a non-disabled child, it’s essential to balance their financial needs while planning for the future. Consider creating a special needs trust to protect government benefits for your special needs child while also providing for your non-disabled child. You may also want to think about how to divide assets fairly, taking into account the unique long-term care needs of your special needs child without overlooking the future of your other child. Proper planning helps support both children without creating conflicts later.
Do I need separate special needs trusts for each of my special needs children?
Whether you need separate special needs trusts for each child depends on your family’s specific goals and circumstances. In some cases, having individual trusts may provide more tailored benefits for each child. However, a single trust can also work if it is structured properly to meet the needs of multiple beneficiaries. It’s important to carefully assess your children’s unique situations to decide which option best suits their future care and financial security.
How can I effectively advocate for my child in the medical system?
Advocating for your child in the New Jersey medical system involves being proactive and informed. During medical appointments, ask detailed questions to fully understand your child’s condition and treatment options. Keep thorough records of all treatments and diagnoses, and don’t hesitate to seek second opinions when necessary. Familiarize yourself with your child’s rights under New Jersey healthcare laws, which protect access to necessary treatments and services. It is also helpful to maintain a list of contact names and numbers to facilitate regular communication with healthcare providers, allowing you to address any concerns about your child’s care promptly. Staying organized and persistent can help you support your child effectively.
How can I maintain my ability to make legal decisions and provide care for my special needs child once they turn 18?
In New Jersey, when a child with special needs turns 18, parents can maintain their legal authority to make decisions by obtaining guardianship. This legal process allows parents or caregivers to continue managing their child’s medical, financial, and personal affairs.
How do Medicaid and Medicare differ from each other?
Medicaid and Medicare are both government programs, but they serve different purposes. Medicaid is a needs-based program that provides health coverage for individuals with low income, including the elderly, disabled, and children. In New Jersey, Medicaid eligibility is determined by income and family size. Medicare, on the other hand, is primarily for individuals 65 and older or those with certain disabilities, regardless of income. Medicare is a federal program that offers hospital and medical insurance, while Medicaid provides more comprehensive care, including long-term services.
What happens to the remaining funds in a special needs trust if my child passes away?
If a child with a special needs trust passes away, the remaining funds in the trust are typically distributed based on the terms set when the trust was created. In New Jersey, if it’s a first-party special needs trust, any remaining funds may be used to reimburse Medicaid for benefits received by the beneficiary during their lifetime. After Medicaid is reimbursed, any remaining funds can go to designated heirs or beneficiaries as outlined in the trust. For third-party special needs trusts, the funds usually pass directly to the named beneficiaries without the need for Medicaid reimbursement.
What distinguishes SSI from SSDI?
SSI (Supplemental Security Income) and SSDI (Social Security Disability Insurance) are both programs designed to assist individuals with disabilities, but they differ in important ways. SSI is a needs-based program that provides financial support to individuals with limited income and resources, regardless of their work history. SSDI, on the other hand, is based on a person’s work history and requires that the individual has paid into Social Security through taxes for at least 10 years. However, if the potential beneficiary of SSDI is a child who became disabled before the age of 22, eligibility can also be based on the parents’ work and contributions to Social Security.
| Financial Planning Aspect | Consideration |
|---|---|
| Special Needs Trust | Protects government benefits and ensures funds are available for your child’s care. |
| Division of Assets | Balancing financial support for both special needs and non-disabled children. |
| Guardianship | Maintains legal authority for decision-making after the child turns 18. |
| Government Benefits (Medicaid & SSI) | Understanding eligibility criteria and requirements for long-term support. |
| Medical Advocacy | Keeping records and understanding rights under healthcare laws. |
Have More Questions? Contact Us Today
Obviously, this is just a brief sampling of potential questions regarding financial planning for special needs children. We understand that, as a parent of a special needs child, you will likely have many more questions. Please don’t hesitate to reach out to The Matus Law Group at (732) 785-4453 if you have any additional questions that we haven’t covered in this blog.
Be sure to check out Part I of this blog to learn some of the most important terms and concepts relating to financial planning for special needs children. And keep an eye out for our next blog where we will address some of the diverse life challenges—emotional, logistical, career-related, etc—involved in raising a special needs child.
