The 7 Core Concepts of an The 7 Core Concepts of an Effective Special Needs PlanEffective Special Needs Plan

The 7 Things You Need to Know to Design a Plan That Protects Your ChildThe 7 Things You Need to Know to Design a Plan That Protects Your Child

Heath Burch, CFPHeath Burch, CFP® ® & Scott Adams, CFP& Scott Adams, CFP®® - Principals & Co-Founders - Principals & Co-Founders

Securities and advisory services offered through NATIONAL PLANNING CORPORATION (NPC), Member FINRA/SIPC, a Securities and advisory services offered through NATIONAL PLANNING CORPORATION (NPC), Member FINRA/SIPC, a registered investment advisor. Adams Burch, LLC, The Special Needs Planning Center and NPC are separate and registered investment advisor. Adams Burch, LLC, The Special Needs Planning Center and NPC are separate and

unrelated companies.unrelated companies.Copyright 2011 Adams Burch, LLC All Rights Reserved Copyright 2011 Adams Burch, LLC All Rights Reserved

Navigating a Unique & Often Confusing Navigating a Unique & Often Confusing ProcessProcess

Special needs planning is a unique Special needs planning is a unique processprocess

Parents must search out accurate Parents must search out accurate information and sound guidanceinformation and sound guidance

Designing an effective special needs Designing an effective special needs plan for your child involves working plan for your child involves working

through a number of factors and through a number of factors and making some difficult decisions. making some difficult decisions.

The goal of this workshop is to provide The goal of this workshop is to provide you with seven core concepts that you with seven core concepts that you’ll ultimately need to become you’ll ultimately need to become familiar with and make informed familiar with and make informed

decisions surrounding. decisions surrounding.

1. Social Security Education & 1. Social Security Education & ApplicationApplication

Key Notes: Key Notes:

Application in most cases can be made Application in most cases can be made beginning at age 18beginning at age 18

Federal Regulation Restricts Assets for Federal Regulation Restricts Assets for Someone on SSI to $2,000 or LessSomeone on SSI to $2,000 or Less

Social Security… continuedSocial Security… continued

What does social security provide?What does social security provide? Can vary by individual, but may provide Can vary by individual, but may provide

access to:access to: Monthly cash stipendMonthly cash stipend Access to housingAccess to housing Qualification for medicaidQualification for medicaid Job coachingJob coaching Social skills trainingSocial skills training … … and much more by caseand much more by case

2. Self Determination & 2. Self Determination & AdvocacyAdvocacy

At age 18 your child is an adult and your access At age 18 your child is an adult and your access to information will endto information will end

To gain access to information (medically, To gain access to information (medically, financially and otherwise) actions are financially and otherwise) actions are necessarynecessary

Guardianships & AlternativesGuardianships & Alternatives GuardianshipGuardianship Limited GuardianshipLimited Guardianship Durable PowersDurable Powers

Self Determination & Advocacy Self Determination & Advocacy … continued… continued

3. Basic Legal Plan3. Basic Legal Plan

WillWill What does a will do?What does a will do?

1 – Establishes a guardian for our 1 – Establishes a guardian for our children (under age 18)children (under age 18)

2 – Directs where our “stuff” goes2 – Directs where our “stuff” goes

Rep is not an attorney. Rep will help review the documents and recommend a local attorney that specialized in Rep is not an attorney. Rep will help review the documents and recommend a local attorney that specialized in Estate Planning. Estate Planning can involve a complex web of tax rules and regulations. You should Estate Planning. Estate Planning can involve a complex web of tax rules and regulations. You should consider the counsel of an experienced estate planning professional before implementing any strategy. consider the counsel of an experienced estate planning professional before implementing any strategy.

Basic Legal Plan… continuedBasic Legal Plan… continued

TrustTrust What does a trust do different from a What does a trust do different from a

will?will? Avoids probateAvoids probate Moves our “stuff in a backpack”Moves our “stuff in a backpack”

Rep is not an attorney. Rep will help review the documents and recommend a local attorney that specialized in Estate Planning. Estate Planning can involve Rep is not an attorney. Rep will help review the documents and recommend a local attorney that specialized in Estate Planning. Estate Planning can involve a complex web of tax rules and regulations. You should consider the counsel of an experienced estate planning professional before implementing any a complex web of tax rules and regulations. You should consider the counsel of an experienced estate planning professional before implementing any

strategy.strategy.

4. Special Needs Trust4. Special Needs Trust

How does it protect my child’s ability to How does it protect my child’s ability to benefit from governmental assistance?benefit from governmental assistance?

What can it offer in terms of What can it offer in terms of supplemental resources?supplemental resources?

What are the restrictions?What are the restrictions?

Rep is not an attorney. Rep will help review the documents and recommend a local attorney that specialized in Estate Planning. Rep is not an attorney. Rep will help review the documents and recommend a local attorney that specialized in Estate Planning. Estate Planning can involve a complex web of tax rules and regulations. You should consider the counsel of an experienced Estate Planning can involve a complex web of tax rules and regulations. You should consider the counsel of an experienced

estate planning professional before implementing any strategy. estate planning professional before implementing any strategy.

Special Needs Trust… Special Needs Trust… continuedcontinued

Funding: Our Planning is DifferentFunding: Our Planning is Different

Parents’ Childhood

Time Line

Death of B

oth Parents

Parents’Current Working Years

Parents’Retirement Years

Preparation for working

years.

Time spent raising children, preparing for retirement and setting

up long term care of children.

Time spent in retirement and preparing for long term care of children.

Time needed to raise and supportthe special needs child

5. Continuity of Care Guide5. Continuity of Care Guide

Do you have a plan to educate future Do you have a plan to educate future guardians?guardians?

Is there a Is there a written blueprintwritten blueprint that that guides the next caregiver?guides the next caregiver?

6. Post-Education Planning6. Post-Education Planning

Educational OptionsEducational Options Traditional post secondary educationTraditional post secondary education Non-traditionalNon-traditional

Employment OptionsEmployment Options IncomeIncome Social outletSocial outlet Quality of life issuesQuality of life issues

Post-Education Planning… Post-Education Planning… continuedcontinued

Ticket-to-Work ProgramTicket-to-Work Program Ages 18-65Ages 18-65 Employment NetworkEmployment Network

Plan to Achieve Self Support (PASS)Plan to Achieve Self Support (PASS) Goal: training, services, business Goal: training, services, business

startup, school, equipment/tools, startup, school, equipment/tools, transportationtransportation

Allow to save for goalsAllow to save for goals

7. Independent Living / Living 7. Independent Living / Living ArrangementsArrangements

Group Home – professional vs privateGroup Home – professional vs private Home Living – professional vs no Home Living – professional vs no

supportsupport Community Living – apartment, Community Living – apartment,

residentialresidential Goal: Transition before parents can Goal: Transition before parents can

no longer provide careno longer provide care

Are You Prepared?Are You Prepared?

Planning for your child’s future is one Planning for your child’s future is one of the most important tasks you will of the most important tasks you will ever be given.ever be given.

Special needs planning is unique.Special needs planning is unique. It is imperative that professionals It is imperative that professionals

involved with this work are experts in involved with this work are experts in the field of special needs planning.the field of special needs planning.

How Do You Start?How Do You Start?

Commit to yourself that you are Commit to yourself that you are going to begingoing to begin

Utilize a process with professional Utilize a process with professional guidanceguidance