One of the primary concerns in planning for the future of your Special Needs loved one is “how much money will be enough to provide the care they deserve?” This is an obvious question; however, the answer is not so straight forward.
There are a number of factors to consider when carefully making this assessment. First, you must determine the earning capacity of your loved one. Next, you should calculate a best estimate on your loved ones monthly expenses (including housing and medical). Finally, you will want to determine your loved ones life expectancy. From there, you can come up with a rough estimate of how much money will be needed each month and then can calculate the size of the supplementary fund you should provide your loved one.
The number you come up with today may not be the same number you come up with later on down the road. The amount required of your loved one will be a moving target as circumstances change, needs or desires change, or abilities of the individual change. Therefore, you should do your best to plan for today, and make adjustments as often as necessary.
Keep in mind that the earning power of your loved one may be subsidized with government benefits. These benefits can come in handy and may pay for a medical expense that is not direct income, but could dramatically change the amount you need to plan for. However, we like to plan on the conservative side and calculate the needs both with and without government benefits. Although these benefits may be available, planning for the possibility that they are not there in the future is a good idea.
Contact one of our advisors at Golden Financial Services to help determine the funding size requirement. After you make this determination, you will need to analyze your current position and possibly come up with some solutions to adequately fund your loved one’s future. We are financial advisors that specialize in planning for a Special Needs individual and would enjoy the opportunity to sit down with you to discuss these financial concerns.
Sign up today for our Membership website and receive a discount on our consulting fees. Our Life Plan Builder will guide you through the process of creating your own Life Plan with helpful checklists, forms, and samples. Included in the Life Plan Builder is a comprehensive financial section that will guide you through the steps to determine your own Special Needs Trust funding requirements.