Information
of interest to
people with
disabilities
and other
special needs
and their
families.
Strategies for Couples:
What to Consider When Both Persons
Have Special Needs.
When two individuals with special needs live
together as a couple, what kind of financial
strategy should they have? Should it include
measures not found in other couples’ strategies
– couples in which only one person has special
needs, or neither person does?
“Whatever your situation, whether single,
married, or living together, whether you have
special needs or not, your financial strategy
will differ from others,” says Harry Bayer, a
Special Care Planner with Massachusetts
Mutual Life Insurance Company (MassMutual)
in Birmingham, Alabama. “That’s because
strategies are created to meet the particular
needs of the individual, couple, or family.”
Different couples, different needs
Let’s look at two supposed situations (created for illustrative
purposes; not actual couples), which may reflect your own
circumstances.
Couple #1, Both individuals in our first couple are high functioning and can work to supplement their income, but because
they receive government benefits, they’re limited in how much
they can earn* without jeopardizing their benefits. They want
to ensure that when one dies, the other will have funds to pay
for things he or she may want or need.
“We’d want to take a look at the couple’s complete financial
situation and learn more about their lifestyle before reviewing
options with the couple,” says Bayer. A savings account or other
type of investment in their names could affect their eligibility
for government benefits, but they may want to consider creating
a special needs trust. The couple might have separate trusts or
one shared trust, depending on what’s most suitable for them.
It could be funded with proceeds from
a life insurance policy, an investment,
gifts of money or an inheritance, or some
other source of revenue. Trust funds
could be used for the couples’ needs
now (excluding food and shelter
expenses) and later when there’s only
one income (due to death or other
circumstances that may prevent one of
them from working). All aspects of the
couple’s financial situation should be
considered before creating a trust, and
they, along with others on their team of
financial experts, should work with an
attorney who’s experienced in writing
special needs trusts.
Couple #2, Our next couple is young,
and they’re eager to marry and live on
their own, which they can do with a
good deal of help from their parents
and other caregivers. Each has an SNT.
“We’d want to work with this couple’s
team of supporters to determine if they
should continue to have separate trusts,”
Bayer says. “The couple, the parents,
and any other individuals significantly
involved with assisting this couple (such
as conservators or guardians) should
meet with a financial professional and
attorney who are skilled in working with
individuals with special needs. It might
be best to leave things as they are, especially since each individual’s parents
have already spent time and money
creating a trust for their own child. But
when they marry, their lifestyle and
needs will change, and adding a new
trust to supplement the individual ones,
or creating a single trust for both, might
be the way to go.”
More steps
What else might a couple with special needs do?
Here are some ideas.
Government benefits. We’ve said it before, we’ll say it again.
Know the income and asset levels that will keep you eligible
for benefits and maintain those levels. Re-qualifying for benefits, if you lose them, will take time and energy, and while
you wait for approval (many months or even a year or more),
your financial security suffers.
Establish a team. “You need a team who can work together for
your benefit,” cautions Bayer. “Use pros who are experienced
in helping people with special needs – a good lawyer and
financial pro who knows the nuances of a strategy for special
needs, your banker or accountant – people who can help you
with Social Security benefits, who can be your real advocates,
who can work with others involved in your well being.”
Life insurance. There are many ways life insurance is used in
strategies – insuring lives of the individuals with special needs,
parents, grandparents, siblings, or others – but there are many
types of policies, and many factors come into play before a
decision can be made.” Additionally, a parent, grandparent, or
other relative might use a life insurance policy to fund an SNT
for the individual with special needs.
Earnings beyond Social Security. You’ll probably want your
income to be more than just Social Security benefits. A highfunctioning couple might work and earn income (keeping it
within the requirements to maintain eligibility), or a couple
might receive support from parents or other loved ones. Gifts
of money or assets can be directed to an SNT. Trust funds can
then be used for the sole benefit of the trust beneficiary(ies)
to pay for things such as caregiver services, therapies and
equipment not covered by Medicare, housing expenses,
furniture, school tuition and expenses, entertainment, vacations,
and even to purchase gifts for the beneficiary(ies) to give
to others.
Advocates and personal guardians. At times, an advocate
(friend, family member, attorney, SNT trustee, or even an
institution) can help the couple make decisions, secure benefits,
provide advice, and so forth, especially if the couple faces
intellectual challenges. You may also want to name someone
as legal guardian to make decisions and provide support related
to finances, personal assistance, or both. “It’s an awesome
responsibility,” cautions Bayer, “so choose carefully.”
Inform others. After you’ve created a
financial strategy, tell friends and family.
“Talk to grandparents and others who
may be putting money aside for you,”
says Bayer. “Their gift may jeopardize
government benefits or might work
harder for you if incorporated into your
already-established strategy.”
Review your financial strategy. Once
established, plan to review your strategy
annually and whenever a major event
occurs. Think ahead to what your future
might hold. If you have children, or plan
to one day, incorporate the entire family’s
current and future needs into your
strategy and make changes as needed.
What’s your reality?
The examples at the beginning of this
article are general and incomplete
descriptions of two fictional couples
with special needs. In reality, we could
continue to create an unlimited number
of scenarios, and still we may not exactly
describe the situation faced by you or a
loved one. Our intent was to open your
eyes to options you may not have been
aware of and show that there may be
ways to resolve concerns, improve your
current financial picture, and put strategies in place for a more secure future.
Talk to a financial professional or attorney
who has training and experience in
helping individuals, couples, and families
with special needs.
* Limits for SSI and SSDI may differ. Visit , call
1-800-772-1213 or talk to your case worker for
more information.
MassMutual has carried the Exceptional Parent (EP)
Symbol of Excellence since receiving it in 2004 in
recognition of its commitment and service to people
with disabilities and other special needs and their families.
* The Special Care Planner receives advanced
training and information in estate and tax planning
concepts, special needs trusts, government
programs, and the emotional dynamics of working
with people with disabilities and other special needs
and their families. The certificate program is offered
by The American College in Bryn Mawr, PA,
exclusively for MassMutual financial professionals.
State insurance departments recognize that the
Special Care Planner certificate program provides
essential information on the profession of special
care by granting continuing education (CE) credits
(varies by state).
A Special Care Planner through MassMutual’s
SpecialCareSM program can assist parents in drafting
Letters of Intent and can help make a difference in the
quality of life for an individual with special needs,
their caregiver and other family members. Through
SpecialCare you will learn valuable financial strategies,
identify financial strategy solutions, access vital
information, and meet certified specialists who will
work with you and your professional advisors – your
banker, accountant or financial planner, lawyer, social
workers and health care providers – to review your
financial picture and offer options to fit the needs of
each situation. For more details, visit MassMutual’s
website at http://www.MassMutual.com/specialcare,
or call 1-(800)-272-2216.
About MassMutual
MassMutual Financial Group is the marketing name
for Massachusetts Mutual Life Insurance Company
(MassMutual) and its affiliated companies and sales
representatives. Assets under management include
assets and certain external investment funds
managed by MassMutual's subsidiaries.
Founded in 1851, MassMutual is a mutually owned
financial protection, accumulation and income
management company headquartered in Springfield,
Mass. MassMutual’s major affiliates include:
OppenheimerFunds, Inc.; Babson Capital
Management LLC; Baring Asset Management
Limited; Cornerstone Real Estate Advisers LLC; MML
Investors Services, Inc., member FINRA and SiPC
(www.finra.org and www.sipc.org), MassMutual
International LLC and The MassMutual Trust
Company, FSB. MassMutual is on the Internet at
www.massmutual.com.
The information provided is not written or intended
as tax or legal advice and may not be relied on for
purposes of avoiding any Federal tax penalties.
MassMutual, its employees and representatives are
not authorized to give tax or legal advice. Individuals
are encouraged to seek advice from their own tax or
legal counsel. Individuals involved in the estate
planning process should work with an estate
planning team, including their own personal legal
or tax counsel.
Reprinted with the expressed consent and approval of Exceptional Parent, a monthly magazine for families and professionals dealing with individuals with disabilities and special health care needs.
Digital Subscription cost is $19.95 per year for 12 issues. Call (800) 372-7368. Offices at 416 Main Street, Johnstown, PA 15901 ©2010
Massachusetts Mutual Life Insurance Company
and affiliates, Springfield, MA 01111-0001
Massachusetts Mutual Life Insurance Company, Springfield, MA. www.massmutual.com. MassMutual Financial Group is a marketing name for
Massachusetts
Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives.
www.massmutual.com
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