|
|
|
|
Return to Savvy Consumer Information Center - Home Page |
Planning for Financial Needs SAVINGS Figuring out what your child is likely to need is tricky. Ask yourself: How much money will my child need during his or her lifetime? Start answering the question by estimating your child's current monthly expenses (whether the costs are paid by you, private insurance, etc.). Annualize these costs. Then, assuming a modest interest rate, determine the lump sum amount you will need to produce that much income on an annual basis without depleting principal. Of course, this does not take inflation or other factors into consideration. If you are just beginning to accumulate assets to fund a special needs trust, there are a variety of funding options, as discussed earlier. A special needs trust can contain personal property, such as artwork. Keep in mind, these assets may not be readily converted into cash. A value of a home also is susceptible to market fluctuation. Moreover, you may want the family home to stay in the family and not have to be sold to provide necessary care. INVESTMENTS |
LIFE INSURANCE Term Insurance |
Finding Financial Aid Raising a child is expensive. Raising a
child with disabilities is even more expensive. The unique supplies, equipment,
treatments and procedures such a child needs can tax even families with
significant personal assets. Fortunately, financial relief may be available. State and federal government programs, community resources, Social Security benefits, private foundations, medical insurance and special education resources provide aid. Consult city, county, state and federal agencies for help in answering financial aid questions. Generally, government benefits are paid to a disabled dependent child, based on family income. But once a child turns 18, these benefits are awarded based on the child's own assets and income (even if the child is still living at home with the parents). The most important public benefit programs are Medicaid and Supplemental Security Income (SSI). |
Medicaid is a state-administered, federally reimbursed program that pays for needed medical care for eligible persons. An applicant's medical diagnosis, finances and age are used in determining eligibility. To apply for benefits, contact your local Medicaid office or the state health department. SSI is a federal program that provides income from the federal government to certain individuals with disabilities. Cash benefits are paid each month, up to the "Federal Benefit Rate." To apply for SSI, contact your local Social Security Administration office. Eligibility for both of these programs is based on need as well as disability. A person is not qualified to receive SSI if he or she has "countable resources" in excess of $2,000 or "countable income" in excess of the Federal Benefit Rate. SSI payments are reduced by the amount of any "countable income" received by an SSI recipient. Also, assets in a special needs trust may be claimed by Medicaid upon the death of the beneficiary if Medicaid paid benefits while the trust was in effect. Contact your local Social Security Administration office for additional information. |
Return to Savvy Consumer Information Center - Home Page |
|
|
|
|
Get the Savvy Consumer Newsletter! (FREE) |