Have you ever wondered what happens to disabled adults when their parents die?
No parent likes to think about their own mortality, but having a plan and savings can help you feel confident that your child will always have care even when you’re no longer around.
Do you want to know how you can start building a savings to provide for your disabled child? Keep reading for 5 helpful tips.
1. Collect Disability Income
One of the best ways you can provide for a disabled adult child is to help them collect disability income. Disability income is paid monthly by an insurance provider to cover living expenses and maintain a high-quality of life. Speaking with an insurance company can help you learn more about the qualifications, benefits, and other important details about this form of income.
2. Don’t Forget About SSI, SDI, and Medicaid
Another reliable place you can contact for help is actually the government. Government programs like Supplemental Security Income, Social Security Disability Insurance, and Medicaid could all be a valid source of income for your family. Checking out the government’s informational pages can help you determine if you’re qualified.
3. Open an ABLE Account
Finding benefits for parents of a disabled child can be challenging, which is why the government has created a new savings plan called ABLE. Since SSI has strict rules about how much money a person can have, many people who are in need are excluded because they surpass the savings limit.
One way you can work around the system is to open an ABLE account, which allows you to deposit up to $14,000 without getting disqualified from other government programs. ABLE account withdrawals and earnings are also tax-free, which can take a lot of stress away.
4. Start a Trust Fund
A special needs trust is another clever way families can work around the government’s strict income and savings rules for collecting SSI and other forms of income. A trust fund is a great way to plan for the future because you can outline how you want that money to be distributed after you’ve passed away. Since you’re in control of the funds, you can take comfort in the fact that your child will always be safe their whole life.
5. Consider Finding a Flexible Second Job
Taking care of disabled children can be time-consuming and expensive, which means it may be hard to find a steady or lucrative job. This is why it’s helpful for parents to consider pursuing a side job that allows them the flexibility to work from home and set their own hours. Teaching English as a foreign language or transcribing are just a couple of great telecommuting jobs.
These Tips Can Help You Provide for Your Disabled Child
If you follow these 5 tips, you’ll be able to build a cushy savings. With this peace of mind, you can focus on enjoying your life with your disabled child and giving them all of the care they deserve.
Do you want to learn other ways you can improve your finances? Explore our site to find more expert tips and guides.