Monday, November 15, 1999
Tips for preparing for future
According to Merrill Lynch, only a small fraction of the families of 14.7 million disabled children and adults have prepared for their future. The financial services firm suggests this five-step approach to protect them and their assets:
• Prepare a letter of intent. Written by parents or family members, the letter should describe the child's history and status, as well as cover plans for care, education and social activities.
• Choose guardians or advocates. Most often family members, these people implement the letter of intent. Advocates are informal and nonlegal, while guardians are court approved.
• Determine the realistic cost of your plan and the resources available. This includes estimating future costs, as well as analyzing your finan cial resources, such as savings, pension funds or other employee benefits. Also consider eligibility for Medicaid, Medicare, Social Security disability benefits, Supplemental Security Income, veterans' benefits and state, county and city public assistance.
• Determine a funding plan. Decide how to allocate resources — including inheritances — to follow rules of public assistance. This often means setting up a special-needs trust as either a long-term savings plan or way to receive gifts and fund supplemental needs.
• Meet with all involved parties to discuss your plan, and review your status at least once a year. The planning and special trust do no good if other relatives aren't aware of inheritance and gifting restrictions. Also, re-examine the paperwork with a professional as laws often change.
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