Information of interest topeople with disabilities and other special needsand their families.

If you’re receiving government benefits,you’ve probably heard the warning: Don’t doanything that will cause you to lose them. But what if you prefer to live without those benefits? Or what if the benefits end regard-less of the care you take to maintain your eligibility? What then?

Plan to Live without Government Benefits

When someone in your family has special needs, and daily

living expenses plus medical costs exceed the norm, receiving

Supplemental Security Income (SSI) and Medicaid or other low-

income programs offered by the state and federal governments

can certainly be a welcomed benefit. And losing those benefits

could wreak havoc on your financial well being.

You might inadvertently take an action that makes you ineligible

to continue to receive the benefits. Or, as some Americans fear

will happen with Social Security retirement benefits, the govern-

ment may stop offering a program that provides benefits to you.

Looking at it from a different point of view“The best scenario is to come off government benefits because

you choose to, and not because you’ve lost them or they’re no

longer offered,” says Steven E. Krasnipol, CFP, CLU, ChFC, LUTCF

who has earned the Chartered Special Needs Consultant (ChSNC)1

designation and is a Special Care Planner associated with HF

Financial of Charlotte, North Carolina, a general agency of

Massachusetts Mutual Life Insurance Company (MassMutual).

“It’s best to plan to lose them.”

Examining the present, seeing the futureThe first step to developing a strategy to live without govern-

ment benefits is to evaluate your current situation and anticipate

what the future might hold. Here are a few things to consider.

Look at the medical prognosis.

How severe is the medical condition? How self-supportive is

the person now, and how will that change over time?

Consider your medical costs.

How burdensome are they now and

how will they impact your finances in

the future?

Anticipate future expenses.

The age and health of the person with

special needs will play a significant role

in your future expenses, obviously. Look

at that, but also consider other things

like current income and future earning

potential, anticipated future living

expenses (paying off a mortgage, sending

a child to college, cost of living increases,

living on retirement savings, etc.), and

lifestyle changes (job changes, buying a

new home, downsizing to a condo or

senior housing, for example).

“If the person with special needs is a

child,” asks Krasnipol, “is he or she high

functioning? Will your child drive a car,

have a job (with or without a job coach or

in a supported environment), and/or live

outside of your home? All these possibili-

ties could mean long term expenses

for you.”

Help your child with special needswork toward self sufficiency.

As you know, encouraging your child

to reach his or her own highest level of

achievement will strengthen self esteem.

Help your child build a strong work ethic

as they grow, first by helping out at home,

then volunteering outside the home and

eventually finding employment, if those

are attainable goals. Your child’s ability to

earn an income will take some, most, or

perhaps even all the financial burden

off you.

“Aside from personal satisfaction and earned income, employ-

ment can offer a variety of other benefits to help your long term

financial strategy,” explains Krasnipol, “such as a retirement

savings, medical insurance, and health savings accounts2.”

Before your child is old enough to work, begin investigating

employment options. “Your local Easter Seals office is an excel-

lent resource for you,” suggests Krasnipol. “They can help you

find employers who provide supportive work environments and

programs that offer job coaching and guidance.”

There’s also an ever-growing variety of housing options for

people with special needs. It’s a good idea to investigate the

opportunities well before the time comes to make a move.

“Some will have waiting lists or will take some effort on your

part to formalize,” says Krasnipol, “such as working with other

parents to establish an assisted residency for your adult children.”

Protect benefits currently received.

While you’re working to build your financial stability so you

can get off of government benefits, continue to protect them.

Assets for the person receiving SSI must be kept below a certain

level ($2,000 for an individual, $3,000 for a couple), and if

employed, the person’s monthly earnings may not exceed a

certain amount (which may change annually). Be sure to under-

stand these and other restrictions that may jeopardize your

benefits. Talk with a Social Security case worker for details or

learn more at www.socialsecurity.gov/disability.

Other financial considerations“When I work with families to create a

financial strategy,” explains Krasnipol,

“I like to have them think of it as building

a big castle – the place they want to be.

Along the way, we need to be aware of

what we must do to shore up areas of

weakness. We build a moat to protect

the castle.”

For a family that includes someone

with special needs, especially if that per-

son is a child, there are, in essence, two

castles on one country estate. Not only

must there be a financial strategy for the

family – one that works to meet the

financial needs of parents and typical

children now and into their elder years –

but another overlaying lifetime strategy

for the person with special needs.

This dual strategy is further complicated

if government benefits are being received

and the goal is to eventually get off them.

How? “SSI covers basic expenses such as

housing, medical costs, and other living

expenses, says Krasnipol. “Basics, and it

may not cover them fully. One of the best

options to improve quality of life beyond

the basics is to have a special needs trust,

but it must be worded appropriately

when it’s established. If so, when govern-

ment benefits go away, the language will

be flexible enough to continue to make the

funds available to the trust beneficiary.”

It’s important to work with financial

professionals and attorneys who are

experienced in helping people with special

needs. They can ensure that the trust is

written to meet current and future needs,

whether or not the person is receiving

government benefits.

Find out moreTalk with a financial professional, such

as a special care planner, who can help

you evaluate your financial situation,

suggest ways to improve your spending

and saving habits, explain ways to fund a

special needs trust, and show you how to

protect your government benefits while

you build a strategy to live without them.

Because if your benefits end, isn’t it better

that it be your choice that they end?

1 Chartered Special Needs Consultant (ChSNC®) – a profes-sional designation awarded to those individuals who’vecompleted 120 hours of academic classes in addition toholding either Chartered Life Underwriter (CLU),Chartered Financial Consultant (ChFC) or CertifiedFinancial Planner (CFP) designations and previouslycompleting the Special Care Planner certification pro-gram. The ChSNC designation was developed by TheAmerican College in Bryn Mawr, Pennsylvania. The certi-fication program and the professional designationevolved from MassMutual’s SpecialCare(SM) Program.

2 Pre-tax earnings set aside to help pay certain medicalexpenses.

* The Special Care Planner receives advanced training and information in estate and tax planningconcepts, special needs trusts, governmentprograms, and the emotional dynamics of workingwith people with disabilities and other special needsand their families. The certificate program is offeredby The American College in Bryn Mawr, PA,exclusively for MassMutual financial professionals.State insurance departments recognize that theSpecial Care Planner certificate program providesessential information on the profession of specialcare by granting continuing education (CE) credits(varies by state).

A Special Care Planner through MassMutual’sSpecialCareSM program can assist parents in draftingLetters of Intent and can help make a difference in thequality of life for an individual with special needs,their caregiver and other family members. ThroughSpecialCare you will learn valuable financial strategies,identify financial strategy solutions, access vital information, and meet certified specialists who willwork with you and your professional advisors – yourbanker, accountant or financial planner, lawyer, socialworkers and health care providers – to review yourfinancial picture and offer options to fit the needs ofeach situation. For more details, visit MassMutual’swebsite at http://www.MassMutual.com/specialcare, or call 1-(800)-272-2216.

About MassMutualMassMutual Financial Group is the marketing namefor Massachusetts Mutual Life Insurance Company(MassMutual) and its affiliated companies and salesrepresentatives. Assets under management includeassets and certain external investment fundsmanaged by MassMutual's subsidiaries.

Founded in 1851, MassMutual is a mutually ownedfinancial protection, accumulation and income management company headquartered in Springfield,Mass. MassMutual’s major affiliates include:OppenheimerFunds, Inc.; Babson CapitalManagement LLC; Baring Asset ManagementLimited; Cornerstone Real Estate Advisers LLC; MMLInvestors Services, Inc., member FINRA and SiPC(www.finra.org and www.sipc.org), MassMutualInternational LLC and The MassMutual TrustCompany, FSB. MassMutual is on the Internet atwww.massmutual.com.

The information provided is not written or intendedas tax or legal advice and may not be relied on forpurposes of avoiding any Federal tax penalties.MassMutual, its employees and representatives arenot authorized to give tax or legal advice. Individualsare encouraged to seek advice from their own tax orlegal counsel. Individuals involved in the estateplanning process should work with an estateplanning team, including their own personal legalor tax counsel.

MassMutual has carried the Exceptional Parent (EP)Symbol of Excellence since receiving it in 2004 inrecognition of its commitment and service to peoplewith disabilities and other special needs and their families.

Massachusetts Mutual Life Insurance Company, Springfield, MA. www.massmutual.com. MassMutual Financial Group is a marketing name forMassachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives.

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

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