Special needs planning is essential for securing your loved one’s future, but it is never too early to start the process. It is often in your best interest to consider special needs planning as early as possible.
The sooner you begin planning, the more options will be available to you.
You have greater flexibility
The sooner you start special needs planning, the more tools and strategies you can put in place. Beginning the financial and legal preparations while your child is young gives you more flexibility. For example, you may be able to fund a special needs trust or ABLE account that can grow over time. Starting early also allows you to research and understand the options completely.
You can develop financial strategies
Special needs financial planning tools, such as ABLE accounts and special needs trusts, have greater benefits when established early. ABLE accounts, for instance, allow individuals to save up to $100,000 without impacting needs-based government benefits.
You can plan for future changes
The earlier you start saving, the more funds will be available for your child’s future. With a special needs trust, you can place more assets into the trust if you create it early in the individual’s life.
Special needs planning is complex, but it can give you peace of mind for your loved ones. As of the third quarter of 2020, there were approximately 75,000 ABLE account holders and each account held an average of $6,000 in savings. The sooner you start planning, the more you can save for future needs.