7 Financial Planning Mistakes Special Needs Families Should Avoid
As the sibling of a brother with Autism and other developmental challenges, and a career financial advisor who focuses on working with families with special needs members, I have seen a number of common financial planning mistakes made by families all of whom had the best intentions. Even when attorneys and other specialists are included in the planning, the mistakes below tend to go undetected.
If you work with an advisor and attorney who have experience assisting families with special needs children, and you avoid these mistakes, you will be positioning your special needs child for a successful future.
1. Beneficiary designations.
Beneficiary designations are not changed on company retirement plans, IRAs, and life insurance policies to reflect the desired flow of assets to the Special Needs Trust and NOT to the individual outright. The beneficiary designations, and not your will, will determine these distributions.