Wealth management with a special needs child is different. There is still the need to find the best available investment opportunities and those with the least tax liabilities, but the overall purpose in the wealth management has changed. Now, there is a special needs child to consider. In the previous article on
Every special needs child is different, but they usually share one thing - they may have to rely on government services at some time in their lives for the care they need in order to have meaningful quality of life. Any direct inheritance will make those services unavailable to them. Wealth management in the case of a disabled individual requires the development of a strategy for creating the special needs plan, including creating and funding a supplemental needs trust for the disabled individual; carefully deciding who should manage the trust assets so that those assets survive the life of the individual; carefully deciding who the ultimate caregiver will be for the disabled individual; how to make sure that the transition from one care situation to another is as easy as possible for the disabled individual.
Having money gives a family options that may not be available to others. The key is association with the proper legal and financial parties who can properly manage those options for the benefit of the disabled family member. Still, writer Jeff Howe, parent of a severely autistic son, recently said in an article published on-line that paying for a special needs child was like "having your child at the most expensive, private university you can imagine, without having financial aid, for the rest of his life". (See "Paying For My Special-Needs Child", June 24, 2014).
This is precisely why Carol Johnson Law Firm, P.A., partners with other financial institutions who have certified special needs financial advisors that are skilled in the investment strategies that best suit the risk aversity of a special needs trust.
Together with your financial advisor, the Firm can show you how to properly direct your investment interests to the trust in ways that can help to maximize how the interests are received by the trust and minimize any tax penalties on the assets received.
Some of the successful strategies employed by Carol Johnson Law Firm, P.A., are;
Often, a family's wealth management plan includes other children or grandchildren that are not disabled. In this case, while the management vehicle is made more complex, it is still possible, with careful drafting, to define within the asset management vehicle, the supplemental trust that will receive the assets intended for the special needs family member.
Contact Carol Johnson Law Firm, P.A., at the numbers provided above to discuss your particular circumstances and make an appointment for a private consultation.