Financial planning for disabled people a little-tapped field
The specialty, which goes beyond traditional retirement and estate planning, is slowly developing within the financial services industry, but experts say many more advisers are needed.
"This is a market that they really need to pay attention to," said
So far in the brief history of special needs financial planning, many advisers and clients stumble upon the specialty by chance, experts say. Advisers often get involved because of a personal experience with a disabled or sick family member. And families seeking retirement and investing help discover these professionals who do more than make sure their money grows.
That was the case for
Ten years earlier, when Alyssa was 8, she was diagnosed with a rare brain tumor. Surgeons at
But the treatment had left Alyssa -- now 24 -- with loss of some motor skill function, hearing problems and some issues with brain processing, the Shangolds said.
Alyssa has accomplished a lot considering her initial prognosis was a less than 50 percent chance of surviving the cancer, her parents said. She graduated high school on time in 2009. She earned a bachelor's degree in independent studies, with a concentration in psychology and social work, last year from
"Things are still challenging for her," said
The Shangolds hired
"I just knew Mike was a financial planner,"
Duckworth said the work he and his team does includes all the same functions of traditional financial planning, including wealth management, estate planning and tax strategies. But those services are combined with sophisticated trust planning so a family's wealth doesn't disqualify them from government support programs, which often are funded through
"People want to set aside money for a disabled family member and not have that count against them," Duckworth said.
Duckworth helped the Shangolds find programs that support people with disabilities. Alyssa is living in
He also helped
While government programs shoulder some of the financial burden, the costs of care for a person with disabilities can be tremendously expensive, ranging from
Home care aides cost an average of
The cost of caring for a person with Autism Spectrum Disorder can be
More families will face those costs as diagnoses of the disorder skyrocket.
"You have a population, particularly among children, that is seeing higher diagnoses of conditions that will last a lifetime," Beck said.
Other companies have developed practices around special needs financial planning, including insurance companies Northwestern Mutual,
Experts stressed that any family, regardless of income, can benefit from special needs financial planning. At the very least, Beck said, a parent's life insurance policy should be tied to a trust for the family member with a disability.
"You need to protect that person from losing what they're getting or could possibly be getting," said
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