A Harris Interactive poll has found that most parents of children with disabilities lack a plan to cover a lifetime of care, and those who do plan often make mistakes that could disqualify their child from receiving government services. The research was sponsored by the Hartford Financial Services Group, Inc.
In a poll of 580 parents, 62 percent of parents of children with disabilities reported having no plan to cover the cost of caring for the child when they are no longer able to do so.
Even parents with a plan for their child made costly mistakes. Half of all parents of children with special needs plan to leave money directly to their child and even more (58 per cent) name their child as a beneficiary, either of which could possibly disqualify the child for critical government benefits and services. In addition, only a quarter of the parents have established a special needs trust to provide for supplemental needs and expenses of the child, while not disqualifying the individual from receiving government benefits. These missteps likely occurred because only 16 percent of parents with a plan created it with the help of a financial advisor or attorney.
Parents are urged to:
- Work with a professional financial advisor; and
- Establish a special needs trust.
Earlier posts here.