Financial Tools for Families & Children With Special Needs By Diana Love
The cost of living is rising faster than our paychecks! We all feel the effects of inflation, shrinkflation, increased utility bills, and the rising cost of diapers and other kid necessities. And for families of children with special needs (or disabilities), many feel the squeeze of rising expenses even more so. Many families are reluctant to access public benefits. However these benefits are not just for families considered low-income. Sarah Finlayson is a member of Annapolis Moms. Her son, Ethan, has cerebral palsy. She has looked for just about every savings program possible that can be utilized by families like hers. Sarah has the following suggestions about accessing public benefits. If you have a child who is disabled, here are six ways to save. 1. Set up an ABLE account: The Stephen Beck, Jr., Achieving a Better Life Experience Act (ABLE) became law on December 19, 2014. The law aims to ease financial strains faced by individuals with disabilities through tax-free saving accounts. Maryland ABLE accounts help individuals with disabilities save money and pay for qualified disability-related expenses. The Maryland ABLE program offers low fees, varied investment options, easy enrollment, online account management, and a Maryland State income deduction for contributions to a Maryland ABLE account! 2. Social Security Insurance Benefits: These government benefits provide monthly cash payments to help meet the basic needs of children who have a physical or mental disability, as well as children who are blind. If you care for a child or teenager with a disability and have limited income, savings, or other resources, your child may be eligible for Social Security Insurance (SSI). However, once your child turns 18, the SSI benefit is linked to their income and assets. 3. State and Federal Health Insurance: Programs like Medicaid and Maryland's HealthChoice aim to support families and individuals, including those with special needs or disabilities. Different waiver programs exist for federal and state assistance, such as the Medicaid Home and Community-Based Services (HCBS) waiver program and Maryland Community Pathways, Community Support, and Family Support Waivers. These programs help participants live more independently in their
homes and communities. Waitlists for these programs can be long - Finlayson says up to years! Apply for your child as soon as possible! 4. Low-Intensity Support Services (LISS) annual grants are lottery-based financial assistance that provides up to $2000 for eligible children and adults with developmental and/or intellectual disabilities. Grants help pay for services to address your child's needs and improve their quality of life. Finlayson says if you apply and don't win the grant lottery, you should keep trying! 5. Create a Special Needs Trust: A Special Needs Trust allows families to set money aside for a child's needs without giving the money directly to the individual, which would trigger disqualification for other needs- based public benefits. For example, if your child has assets that surpass the $2000 threshold for SSI benefits, they could lose this essential monthly payment. Instead, caregivers can direct proceeds from a life insurance policy, inheritance, settlement, or gift to a Special Needs Trust. These funds can then be used for out-of-pocket medical expenses, personal care aides, education, and recreation costs. 6. Tax Deductions or Tax Credits: The Earned Income Tax Credit (EITC) is a tax credit for people who work and have low to moderate earned income. You or your child can use this credit. The Child and Dependent Care Credit provides a tax credit of up to $3,000 per dependent, to a maximum of $6,000 for all dependents. Child-care, after-school programs, and day camps qualify for the credit. The credit is available for children under 13, but the age limit does not apply to older children with special needs or disabilities. It is worth speaking with a tax expert about how credits or deductions might save you money.
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