Special Needs Trusts

Parents of children with special needs often face years of expensive care for their children. Now a growing number of financial-services companies, lawyers and financial planners -- often calling themselves "special-needs planners" -- are springing up to help parents provide for kids with disabilities, especially when parents are no longer alive to provide care. These professionals guide families through the intricate maze of federal and state programs for disabled individuals, and help set up trusts, insurance policies, retirement plans and estate-planning documents.

More than 41 million Americans, or almost 15% of the population age 5 and older, have some type of disability, according to 2007 Census survey data. Some 6.2% of children ages 5 to 15, or 2.8 million kids, have disabilities, the Census Bureau found. And individuals with disabilities are living longer than ever before. That means that many disabled children will outlive the parents who support them.

At least two professional groups -- the Academy of Special Needs Planners and the Special Needs Alliance -- provide referrals to lawyers familiar with special-needs planning, and other resources. Financial-services firms such as MetLife Inc. and MassMutual Financial Group also have divisions devoted to special-needs planning.

Wall Street Journal October 2008