Special Needs Planning
Special needs planning is a multifaceted process that incorporates financial, legal, educational, and employment considerations, among others. Early, thoughtful planning helps alleviate the financial burden on families and ensures that individuals with special needs can live their lives with dignity, independence, and security. Our advisors are here to help build a team of professionals who can provide guidance to both individuals with special needs and their families for the various important decisions at different stages of life.
The Who and What of Special Needs Planning
At HighPoint Advisors, LLC, we understand that individuals with special needs are first and foremost people who may require varying degrees of assistance & support due to a physical, cognitive, emotional, or developmental disability. It is important to recognize that each individual has unique requirements that evolve over time. Our commitment is to treat all clients with respect and dignity, ensuring that those with special needs are welcomed just like anyone else. In addition, our office is fully handicap accessible, creating an inclusive environment for all.
The Importance of Special Needs Planning
It’s essential to start special needs planning as early as possible – even as early as at the time of diagnosis. Engaging with the individual, their family, caregivers, and school administrators is crucial. Key ages include:
- Prior to age 14 – Begin building your team of professionals, including a special needs attorney and financial advisor. This team will set up the appropriate Special Needs Trusts or other accounts, and then initiate a funding plan for those accounts. Make sure to notify the family that these trusts and other accounts have been established. The family may want to list these accounts as a beneficiary of their wills, life insurance policies and retirement accounts, instead of listing the individual with special needs directly.
- Age 14-17 – Discussions should take place regarding post-graduation paths, if applicable, as well as adulthood.
- Age 18 – The individual reaches the age of majority. At this stage, legal decision-making related to healthcare and finances shifts solely to the individual, unless proper planning is in place. Now’s the time to begin creating funding plans for future income needs.
- Age 21 – The latest age that an Individualized Education Plan (IEP) may terminate.
- Age 26 – The latest age in which an individual must receive a special needs diagnosis to be eligible for an ABLE (Achieving a Better Life Experience) account. This qualifying age will increase from age 26 to age 46 by the year 2026.
- Ongoing – Make sure to periodically review and update trusts and other legal documents. The family should be aware of these documents and the importance of beneficiary designations on various accounts. This is essential to ensure that the individual with special needs doesn’t become disqualified from receiving government benefits.
From a legal perspective, effective special needs planning will provide more control and protection for the individual. This includes empowering the individual, safeguarding family assets, and ensuring access to resources that promote positive life experiences.
The Value of Our Guidance
Our goal at HighPoint Advisors, LLC is to provide actionable guidance on funding special needs plans through tools such as Third-Party Supplemental Needs Trusts, Self-Settled Special Needs Trusts, First Party Special Needs Trusts, and ABLE Accounts. These resources can help to position individuals with special needs to obtain the support they need throughout life, including their ability to plan for future retirement. Our ongoing guidance ensures that the goals of individuals, families, and caregivers are continually addressed and adapted over time.
Take Action & Get Started
To get started on your special needs planning journey, it’s vital to assemble and engage with the right team of professionals. At HighPoint Advisors, LLC, our team includes a specially trained advisor who holds the Chartered Special Needs Consultant Designation. He stands ready to assist you in building your team of attorneys, accountants, and other experts that are also needed to carry out a proper special needs plan over time. Our focus is on the individual with special needs as well as their family and caregivers, ensuring that their unique needs are always prioritized.