Doug K, I learned about ABLE accounts several years ago and was excited to start saving for my daughter's future. (She was born with spina bifida.) Since then, however, I have become less enthusiastic about these accounts after we met with a couple of financial advisors. Both advisors warned against saving a significant amount in those accounts for two reasons: First, the account's beneficiary must also be disabled. Since our daughter is the only one disabled in our family, we couldn't designate a family member as the beneficiary in the event our daughter dies. Second, if she were to die, there's no legal precedent against the government claiming reimbursement for the cost of services our daughter has received over her lifetime. Her ABLE account would likely be a prime target. Our advisors' recommendation has been to only fund the ABLE account to assist with daily living expenses. You'll obviously want to confirm this information with your research/advisors.
David, thank you for sharing this touching article about the good work you and your son are doing for your community. I, too, am a father of a special needs child who is in her early 20s and trying to figure out the next part of her life. She currently receives SSI but we are hopeful she will be gainfully employed one day. I didn't know about DACs' entitlement tied to a parents' social security record. Thanks for the education. It shows I still have plenty to learn before retiring in 5-10 years. I know special needs families are relatively few in number, and Humble Dollar is focused on larger audiences. But here's hoping you write more about navigating the complex world of health insurance, government benefits, and financial planning for families with special needs children.
Comments
Doug K, I learned about ABLE accounts several years ago and was excited to start saving for my daughter's future. (She was born with spina bifida.) Since then, however, I have become less enthusiastic about these accounts after we met with a couple of financial advisors. Both advisors warned against saving a significant amount in those accounts for two reasons: First, the account's beneficiary must also be disabled. Since our daughter is the only one disabled in our family, we couldn't designate a family member as the beneficiary in the event our daughter dies. Second, if she were to die, there's no legal precedent against the government claiming reimbursement for the cost of services our daughter has received over her lifetime. Her ABLE account would likely be a prime target. Our advisors' recommendation has been to only fund the ABLE account to assist with daily living expenses. You'll obviously want to confirm this information with your research/advisors.
Post: Special Care Needed
Link to comment from November 10, 2024
David, thank you for sharing this touching article about the good work you and your son are doing for your community. I, too, am a father of a special needs child who is in her early 20s and trying to figure out the next part of her life. She currently receives SSI but we are hopeful she will be gainfully employed one day. I didn't know about DACs' entitlement tied to a parents' social security record. Thanks for the education. It shows I still have plenty to learn before retiring in 5-10 years. I know special needs families are relatively few in number, and Humble Dollar is focused on larger audiences. But here's hoping you write more about navigating the complex world of health insurance, government benefits, and financial planning for families with special needs children.
Post: Cat’s in the Cradle
Link to comment from January 7, 2024