5 Special Needs Planning Resolutions to Commit to in 2023

It is 2023! Can you believe it? This time always feels like a blank slate – a new opportunity to get things right and take control over what is happening in life. That’s what New Year’s Resolutions are all about right? So to kick off 2023, I want to talk about the 5 Special Needs Planning Resolutions to Commit to in 2023!

NUMBER 1
The first Special Needs Planning Resolution to commit to in 2023 is to make sure you have a completed Estate Plan that clearly specifies how you want your money and other assets distributed when you can no longer speak for yourself. Now, having a child with Special Needs means that a standard Estate Plan with a will, trust, power of attorney, and healthcare proxy, may not be enough. If your child may never be able to live independently, requires some protection, and/or may rely on means-tested government benefits, you will need at least two additional documents, a Special Needs Trust, and a Guardianship Nomination. The Special Needs Trust allows you to leave assets for the benefit of your child while preserving their eligibility for public benefits, like SSI, should they ever need it. The Guardianship Nomination, whether full or limited, gives you the opportunity to nominate who will be in charge of some or all personal affairs of your adult child with disabilities. It’s important to remember, though, that not everyone will require guardianship and great consideration should be taken before choosing this path. Ultimately, people want to be as independent as possible, whether they have a disability or not, so it’ll be crucial that you review what options are available to you and what makes the most sense for your specific situation.

NUMBER 2

The second Special Needs Planning Resolution to commit to in 2023 is to get your Letter of Intent completed. In my YouTube video, "Letter of Intent" I go through exactly what should be inside of your Letter of Intent and how often it should be reviewed and updated. The Letter of Intent is a blueprint for any caregiver of the best way to care for your loved one. It describes their healthcare and therapeutic needs, their lifestyle preferences, and contact information for doctors, therapists, and teachers. But most importantly, it will convey insights into your child’s personality that only you know, so at the time of transition from one caregiver to another, it will go as smoothly for all parties involved as possible.

NUMBER 3

The third Special Needs Planning Resolution to commit to in 2023 is to Familiarize yourself with SSI and SSDI. SSI, or Supplemental Security Income, is often confused with SSDI, or Social Security Disability Insurance. SSI is a federal program that helps people with disabilities pay for food, clothing, and shelter. Once someone begins receiving SSI, they are automatically eligible for Medicaid. SSDI pays benefits to your or certain family members if you are "insured." This means that you worked long enough and paid social security taxes on your earnings. A person receiving SSDI is eligible for Medicare after a 24-month qualifying period. The most obvious difference between SSI and SSDI is that SSDI is available to people with disabilities no matter how much money they have or how much money they earned before becoming disabled. Contrary to that, SSI has very strict limits on how much income and assets a person has in any given month.  This is where Special Needs Trusts and ABLE Accounts can be very helpful since they are uncountable resources and will not reduce the SSI benefit if used appropriately.

NUMBER 4

The fourth Special Needs Planning Resolution to commit to in 2023 is to open an ABLE Account. An ABLE Account is a tax-advantaged account that a person who became disabled prior to their 26th birthday can open to save money without harming their eligibility for means-tested benefits. Some exciting news just came out that beginning in 2026, the age requirement will change from 26 to 46, which could make more than 6 million additional people eligible to use these savings accounts. This means that 6 million more people will be able to accrue and save up to $100,000 inside of the ABLE Account without the fear of losing the benefits they rely on. And on top of that, the contribution limit of $16,000 per year was increased to $17,000 in 2023. With these changes, more and more people will be able to live more independent lives while getting the services they need.

NUMBER 5

The fifth Special Needs Planning Resolution to commit to in 2023 is to speak with a professional who can walk with you through your specific situation. Planning for you and your loved one is a team effort, you don't have to do it alone.

No matter the planning you have done previously, or the lack of planning you have done, take a moment to envision what your life would be like if you stuck with these five resolutions. Would you feel less stress about the future? Would you sleep better at night knowing that you have done all you can to plan for your loved one? Beginning the planning process can feel like a huge undertaking, but once you realize that you do not have to be alone in it, you will find it is a comforting process knowing you have done what it takes to make sure there are fewer unknowns in the future.

Let’s make 2023 count!