Protect Your Loved One With Special Needs Through Smart Financial Planning
“Promise me you’ll always remember—you’re braver than you believe, stronger than you seem, and smarter than you think.”
– Christopher Robin
Caring for a loved one with special needs is a journey filled with love, dedication, and, sometimes, exhaustion. It’s a role that demands everything and then some. Ensuring you and your loved one are cared for now and in the future requires thoughtful preparation.
Did you know?
- 1 in 5 children living in the U.S. has special health care needs1
- 24% of American adults are family caregivers2
- 59 million caregivers caring for adults ages 18+ and 4 million caring for a child under age 18 with disabilities3
- 50% of children with disabilities continue to live with their parents into their adult lives4
- 44% of parents assist children with disabilities who are living independently with daily tasks like finances, transportation, and shopping5
These numbers highlight the importance of planning for long-term financial security.
Financial Tools to Protect Your Loved Ones
Special needs planning isn’t just about finances. It’s about peace of mind. It’s about knowing your loved one will be cared for, even when you’re not there to do it yourself. There are a few ways to do this.
Special Needs Trust
A Special Needs Trust (SNT) is one way to protect your loved one’s eligibility for government benefits while enhancing their quality of life6. Assets like investments, retirement accounts, real estate, or life insurance can fund the trust and help ensure long-term security without compromising your own finances.
Life Insurance
Life insurance provides reassurance that your child will have the resources they need, even if you are no longer there.
Letter of Intent
A Letter of Intent (LOI) isn’t a legal document, but it complements your overall plan. It guides future caregivers by outlining routines, preferences, medical needs, and important contacts so they understand how to best support your child. It’s your voice, continuing to speak for your child when you cannot.
Take Care of Yourself Too
Your health and happiness are just as important as your loved one’s security. Simple acts of selfcare like taking time to rest, read a book, go for a walk, or connect with friends are not selfish. They help give you energy and perspective to make thoughtful decisions about your loved one’s care and future. You can’t pour from an empty cup.
Plan Today for Peace of Mind Tomorrow
If you already have a Special Needs Trust and Letter of Intent, review them each year. Life changes and your plan should change with it. If you haven’t started yet, National Caregiver’s Month is an ideal time to reach out to a financial professional who understands your family’s unique situation. Smart financial planning combined with selfcare gives you the strength to keep going with calm and confidence.
Why is special needs planning different?
Every individual is different. Planning ensures a lifetime of care, security, and dignity while preserving access to vital benefits.
What does a Special Needs Trust (SNT) do?
SNTs protect eligibility for government programs while allowing funds to be used for things that enrich life, such as education, recreation, personal care, and more.
How do I create a Special Needs Trust (SNT)?
Work with an attorney who specializes in special needs. Choose a trustee to carry on your wishes for your child and name successor beneficiaries.
What is a Letter of Intent (LOI)?
A Letter of Intent (LOI) is a personal reference guide for future caregivers. It helps them understand your child’s needs, routines, and personality so that they can offer care that feels familiar and loving.
How can life insurance help?
Life insurance can fund a Special Needs Trust and provide tax-advantages and help offer financial security for both you and your loved one.
The use of cash value life insurance to provide a resource assumes that there is first a need a need for life insurance. The ability of a life insurance contract to accumulate sufficient cash value to help meet accumulation goals will be dependent upon the amount of extra premium paid into the policy, and the performance of the policy, and is not guaranteed. Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event. Withdrawals up to the basis paid into the contract and loans thereafter will not create an immediate taxable event, but substantial tax ramifications could result upon contract lapse or surrender. Surrender charges may reduce the policy’s cash value in early years. Guarantees are based on the claims-paying ability of the issuing insurance company.
Why should I work with a team of professional?
You shouldn’t have to do this alone. Financial service professionals, attorneys, and healthcare professionals can help you build a plan that truly supports your family without jeopardizing your loved one’s access to public benefits.
What should I do to get started?
- Reflect on your family’s needs and goals.
- Talk with your legal and tax advisors about creating a special needs trust, Letter of Intent, and other solutions that can meet your needs and goals.
- Connect with a financial professional to discuss how life insurance may benefit you and enhance the quality of life of your loved one with special needs.
Louise W.B. Peach, MBA, ChSNC®
Louise Peach is an Advanced Sales Specialist with National Life Group’s Advanced Sales Team. She received her MBA from Boston University’s Questrom School of Business, and her BA from Mount Holyoke College. She also received her ChSNC® designation (Chartered Special Needs Consultant) from the American College of Financial Services. Before joining National Life Group, Louise spent 13 years working with an Ameriprise Financial Platinum Wealth Management practice. Louise focuses on special needs planning, premium finance business, and business and estate planning concepts. She also manages National Life Group’s CPA Advantage Program and symposiums.