According to the CDC, 61 million people in the U.S., or about 1 in 4 adults, have a disability.
Navigating the world of finances can be challenging for any family, but for those caring for individuals with disabilities, it can feel like an uphill battle. Families caring for individuals with disabilities often face unique financial challenges. These can include higher medical expenses, specialized equipment, therapies, and potentially reduced income if a family member needs to provide full-time care. The multitude of costs for families with disabilities can require thoughtful planning and strategic management.
Here are some planning tools and tactics that could help the financial situation for families caring for individuals with disabilities:
Assess Your Financial Situation & Create A Budget
Start by taking a detailed look at your current financial situation. This includes understanding your income, expenses, debts, and savings. Next, develop a budget that accounts for both regular and unexpected expenses. A well structured budget will help identify areas you might need additional resources or where you can cut costs.
Maximize Benefits and Resources
Take advantage of available resources and government programs designed to support individuals with disabilities and their families:
- Social Security Disability Insurance (SSDI): Provides financial support for individuals who have a qualifying disability.
- Supplemental Security Income (SSI): Offers financial assistance to individuals with limited income and resources.
- Medicaid and Medicare: Programs that cover a range of medical services and support for eligible individuals.
- State and Local Programs: Many states offer additional support programs, including respite care, recreational activities, and educational grants.
- Grants and Scholarships: Various non-profit organizations and government programs offer grants and scholarships specifically for individuals with disabilities. These funds can help cover medical costs, educational expenses, or adaptive equipment.
Plan for the Future
Long-term planning is essential to ensure that your loved one’s needs are met even after you are no longer able to provide care:
- Guardianship: Establish legal guardianship to ensure that a trusted individual can make decisions on behalf of your loved one.
- Letter of Intent: Create a document outlining your loved one’s medical history, preferences, type of care they require, and daily routine to guide future caregivers.
- Life Insurance: Consider a policy that provides financial support for your loved one’s care in the event of your passing.
- Special Needs Trusts: A Special Needs Trust (SNT) is a legal arrangement that allows families to provide for a loved one with a disability without jeopardizing their eligibility for government benefits. Consult an attorney specializing in disability law to set up an SNT tailored to your family’s needs.
- ABLE Accounts: Achieving a Better Life Experience (ABLE) accounts are tax-advantaged savings accounts designed for individuals with disabilities. These accounts allow families to save for disability-related expenses without affecting eligibility for SSI, Medicaid, and other public benefits.
- Long-Term Care Insurance: Consider purchasing long-term care insurance to cover the cost of extended care services, such as home care, assisted living, or nursing home care.
- Get Your Personal Affairs In Order: If you are the primary caregiver of an individual with a disability, you also need to ensure that you have essential legal documents in place, such as a will, power of attorney, and healthcare proxy. These documents will help manage your affairs if you become unable to do so. Additionally, think about your own retirement and how it will affect you ability to provide care.
Seek Professional Guidance
Navigating financial planning for individuals with disabilities can be complex. Consulting with professionals who specialize in this area can provide valuable assistance:
- Financial Planners: Advisors can help you create a customized financial strategy.
- Special Needs Attorneys: Lawyers who specialize in disability law can guide you through legal matters, including trusts and guardianship.
- Social Workers and Case Managers: These professionals can connect you with resources and services tailored to your loved one’s needs.
These professionals can provide valuable insights and help you navigate the complex financial and legal landscapes. Their expertise can ensure that you’re making informed decisions and taking advantage of all available resources. Remember, you are not alone—seek out support and resources to help you on this journey.
Work With Us
At Gainspoletti Financial Services, we know that everyone’s financial situation is unique, which is why we carefully craft each plan or consultation specifically for a person. Contact us to learn more!
The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing materials are accurate or complete. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Gainspoletti Financial Services and not necessarily those of Raymond James. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Raymond James and its advisors do not offer tax or legal advice. You should discuss these matters with the appropriate professional.