Newly introduced legislation may soon alleviate a challenge families sometimes face when planning for a loved one living with disabilities. In general, any funds left to such a beneficiary should be left in a special needs trust. This can get a bit complicated when the funds to be passed on include an IRA or other form of retirement plan, especially for those families who may wish to name the charitable organization that provides services for their loved one as a second beneficiary to such a trust.

Affordable, safe housing is one of the most crucial aspects of a person’s life, especially if that person has a disability. Parents and guardians must plan for this as early as possible to make sure their loved one has a secure and appropriate living situation long after they either become unable to provide care or pass away. Here are some general considerations to keep in mind when formulating a plan. The plan that works best for your family should be affordable in the long term and best suited to your loved one’s disability.

To qualify for Supplemental Security Income (SSI), a federal program that provides people with disabilities a monthly stipend, individuals must conform to very strict income and asset limits. Often, SSI beneficiaries who could hold a job opt not to because they worry about losing their benefits if they earn too much. While this is a valid concern, a program known as PASS offers these individuals the opportunity to pursue their professional ambitions while continuing to receive SSI payment.

If you have a child with disabilities, it is crucial to set money aside for the child’s future. At the same time, you need to consider your child’s access to public benefit programs such as Medicaid and Supplemental Security Income (SSI), as well as the state and federal tax implications. The two major vehicles to accomplish these goals, ABLE accounts and special needs trusts (SNTs), each have their advantages and limitations. Using them in tandem may be the optimal strategy for your child with special needs.