by Richard Lofredo, ChFC, CLU
The lives of the special needs family are often filled with what must feel like a cosmic explosion. The shock of the initial diagnosis, the stages of denial and survival mode, the constant advocacy, and the wonder of what the future holds for the child with the special need and the rest of the family are physically, emotionally and financially draining.
In between these periods of cosmic explosion are pauses, or moments in time, when things get very clear and the family acclimates to its reality and is able to deal more effectively with life. It is in these quiet moments when parents might benefit from obtaining the proper legal and financial counsel to assist the family in moving its long term family goals forward.
Financial planning for the Special Needs Family requires both knowledge and sensitivity on the part of the Financial Professional you choose. The financial future of everyone in the family must be considered. The child with the special need will have his needs evaluated and addressed, but what about the financial needs of the other siblings or the parents? What about the unintended consequences that can occur when a well-meaning grandparent or uncle decide to leave an inheritance to the child with the special need, thereby undermining the careful estate planning that you may have already done?
Each member of the Special Needs Family is on his or her own financial timeline. The siblings are growing up and need a college education, the parents need to save for their retirement, and the grandparents need to enjoy their retirement. Financial planning for the Special Needs Family can address money management skills (cash flows and budgeting), basic financial organization tools, a review of the health insurance plan, future retirement strategies, estate planning including the establishment of wills, health care proxies and power of attorney documents, the establishment of guardianships and special needs trusts, asset protection, debt, legacy planning and the creation of a letter of intent to guide those left behind to care for the child or adult with special needs.
Making time to create an evolving financial strategy for your Special Needs Family may help provide you with a better sense of control, accomplish important family goals, and give you a sense of relief that you have done your best in implementing important strategies. Financial Planning for the Special Needs Family may also help you avoid the unintended consequences that come with the lack of comprehensive planning.
Registered Representative and Financial Advisor of Park Avenue Securities, LLC (PAS), 52 Forest Avenue, Paramus, NJ 07652. Securities products/services and advisory services are offered through PAS, a registered broker-dealer and investment advisor, (201) 843-7700. PAS is an indirect, wholly-owned subsidiary of Guardian. CFS is not an affiliate or subsidiary of PAS.
PAS is a member of FINRA, SIPC.