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FINANCIAL
PLANNING

FINANCIAL PLANNING FOR A
SPECIAL NEEDS CHILD

By David K. Alvarez, CFP

If you are reading this article, chances are you have a friend or nancial risk and ensure their loved one will always receive support
family member that is caring for a special needs child. In the United and care, even when they are no longer around to provide it.
States alone, recent estimates show that about one of every six chil-
dren (roughly 15%) aged 3 to 17 have one or more developmental Guardianship
disabilitiesi. The Centers for Disease Control and Prevention defines When special needs children turn 18, they are legally adults. If they
Developmental Disabilities as “a group of conditions due to an im-
pairment in physical, learning, language, or behavior areas. These are not able to care for themselves or live independently, the parent
conditions begin during the developmental period, may impact day- needs to apply for guardianship.iii The Texas Guardianship Associ-
to-day functioning, and usually last throughout a person’s lifetime.”ii ation defines a guardianship as “a court-supervised administration
The challenges for parents or guardians are many and may seem in- for a minor or for an incapacitated person.”iv This is an important
surmountable, from daily care and maintenance to the financial cost first step, and should be considered along with who would care for
of rehabilitation or treatment. This creates a significant need for fi- the child (or adult) if the parents are not able to do so. In addition
nancial planning. Parents of a special needs child often struggle to to consideration of an ideal future guardian, steps for appropriate
plan for their own retirement as well as the long-term needs of the care of that child should be diligently specified in writing. These in-
child. Thankfully there are several steps they can take to mitigate fi- structions should include the child’s medications, routines, interests,
fears, family members, close friends, and any other details that will

24 San Antonio Medicine • October 2017