It seems like almost every year there is news that Social Security is going to run out of money. Most people have become immune to the stories and no longer pay attention. However, parents of children with special needs, need to pay attention this time. The Washington Post, hardly an alarmist newspaper, has reported that the Social Security Disability Trust fund will run out of cash in 2016. You need to make an estate plan for your children now.
Special needs children require lifetime care and they are often unable to earn enough money on their own to provide for themselves. Most families rely on Social Security to provide some of the monetary support needed. However, if Social Security Disability does run out of money, other plans will need to be made. Parents and grandparents can set up Special Needs Trusts and Supplemental Needs Trusts to provide the needed financial resources in the future.
It is possible that the government will find a way to keep Social Security Disability running past 2016. However, with the current state of our politics, there is no guarantee that a solution will come and that even if it does that the solution will have the same level of funding as it does today. Plan for your special needs child before it’s too late.