Hiring Your Advisory Team

Special needs planning can be complex. There are legal, financial, tax, medical, therapeutic, governmental and other issues to navigate.

The primary caregiver, whether mother, father, spouse, family member or guardian, has a lot to juggle. The caregiver acts as driver—taking the special needs family member to school, recreational activities and other appointments.

The caregiver fills the roles of chef, clothier, psychologist, benefits expert, bookkeeper and interpreter. Being a caregiver takes courage, patience, empathy, love and time.

Clearly, one person cannot do it all well without help. Some parts of the job can be outsourced if you can find the right partners.

You should consider building a team to handle the financial and legal end of your life. Many families have three key professionals supporting them in setting family goals, protecting government benefits and working through sometimes complex tax issues that arise from having a special needs family member.

They have a financial planner (who is usually their investment advisor), an estate planning attorney and an accountant.

The financial planner works with you to map out your overall strategy. The entire family’s goals and the financial resources to meet those goals must be incorporated.

This advisor will help you determine what retirement income and savings you will need, how much money you wish to leave to your heirs, how much of that should go to a special needs trust and help identify other life goals. You may have goals like starting a business, buying a vacation home or giving to charity.

Usually, your planner is also your investment advisor. This person leads the overall team and is the one you have most contact with each year. 

The investment advisor will help find suitable investments for you based on your planning goals and risk tolerance. This person will work with you to decide which stocks, bonds, CDs, mutual funds or other investment tools could help you stay on track towards meeting your goals.

Ideally, you choose a planner and investment advisor with an understanding of special needs issues. Those without understanding may recommend certain types of accounts that could cause your special needs family member to lose government benefits. An advisor with special needs experience will have an understanding of special needs trusts. He or she will have a network of contacts to help you—like therapists, non-profit agencies, attorneys and more. This professional will be sensitive to the non-financial issues affecting your life.

Ask prospective financial advisors about their experiences in working with special needs families. Understand the network they provide and how they could help you outside the financial world.

Take time to understand how the advisor works. Does she charge commissions? Is he limited to a few products? Does she work for a firm that directs you to limited investment platforms? How does the advisor charge—hourly, fees for assets managed or commissions? What is the advisor’s educational background?

The next advisor you will hire will be your estate planning attorney. Again, you want to have an attorney with knowledge of special needs trusts and the desire to protect available government benefits.

You want an attorney focused on best outcomes and positive solutions for your family. Some estate planning attorneys use the same tools for each client—even though they may not be right for you.

Ask the attorneys about their experiences in working with special needs families. You will want to know if they have drafted documents for those families recently and how often they do this kind of work.

You will want to have a list of questions ready for your attorney. Does the attorney have a preference for an inter-vivos or testamentary trust? Does the attorney charge a flat rate or per hour? What are some of the other types of special needs situations he handled? Does she handle guardianships as well if you need that? Do they recommend trusts for the whole family or do they prefer simple wills? What do they do to stay educated about special needs issues?

The third member of this team is the accountant. We all have the privilege of paying taxes each year. Special needs families may have unique tax opportunities that do not get handled well by software programs or store-front tax preparers.

You may have medical deductions available to you if your medical costs exceed a certain percent of your income. Funded trusts require an annual tax filing in addition to your other taxes each year. Trusts may have different rules impacting tax levels and you will want an accountant that has understanding of these rules.

In general, the accountant does not need to have as much specific experience working with special needs families. Of course, it helps if he or she does.

As with the other advisors, you will want to have a list of questions. How does the accountant work with you each year? What do they expect to charge and how—based on an hourly rate or flat fees? How can she get to know your family's tax picture to be able to offer the best advice? What kind of contact will you have each year?

Choose your advisory team wisely. Ask for references. Take time before making a decision. Having a great team to support you will increase your sense of peace of mind about taking care of yourself and your special needs family member.