The Importance of Age 18 in Special Needs Financial Planning

Although special needs financial planning is a lifelong endeavor that must be reviewed often, age 18 is a milestone for many families as their child is now legally considered an adult. For families that did not qualify for Supplemental Security Income (SSI) due to excess income and/or assets while their child was a minor, age 18 is generally the age families start to file for SSI. The SSI rules change at age 18 as the parents income and assets are no longer factored, or “deemed”, to the child. As a result, only the child’s assets and income are factored from a financial eligibility standpoint after age 18. Once your child turns 18, if they have less than $2,000 of countable assets and no significant income, they should consider filing for SSI.

Another important strategy to consider is filing for guardianship. At age 18, all individuals are legally adults and will have to make their own financial and medical decisions. If they cannot sign a health care proxy and durable power of attorney, or cannot otherwise make these decisions on their own, the family should consider filing for guardianship. Guardianship must be discussed very carefully and all less restrictive options considered, but sometimes guardianship is the most appropriate option to ensure your child’s needs are met.