Information of interest topeople with disabilities and other special needsand their families.

When two individuals with special needs livetogether as a couple, what kind of financialstrategy should they have? Should it includemeasures not found in other couples’ strategies– couples in which only one person has specialneeds, or neither person does?

“Whatever your situation, whether single,married, or living together, whether you havespecial needs or not, your financial strategywill differ from others,” says Harry Bayer, aSpecial Care Planner with MassachusettsMutual Life Insurance Company (MassMutual)in Birmingham, Alabama. “That’s becausestrategies are created to meet the particularneeds of the individual, couple, or family.”

It could be funded with proceeds from

a life insurance policy, an investment,

gifts of money or an inheritance, or some

other source of revenue. Trust funds

could be used for the couples’ needs

now (excluding food and shelter

expenses) and later when there’s only

one income (due to death or other

circumstances that may prevent one of

them from working). All aspects of the

couple’s financial situation should be

considered before creating a trust, and

they, along with others on their team of

financial experts, should work with an

attorney who’s experienced in writing

special needs trusts.

Couple #2, Our next couple is young,and they’re eager to marry and live on

their own, which they can do with a

good deal of help from their parents

and other caregivers. Each has an SNT.

“We’d want to work with this couple’s

team of supporters to determine if they

should continue to have separate trusts,”

Bayer says. “The couple, the parents,

and any other individuals significantly

involved with assisting this couple (such

as conservators or guardians) should

meet with a financial professional and

attorney who are skilled in working with

individuals with special needs. It might

be best to leave things as they are, espe-

cially since each individual’s parents

have already spent time and money

creating a trust for their own child. But

when they marry, their lifestyle and

needs will change, and adding a new

trust to supplement the individual ones,

or creating a single trust for both, might

be the way to go.”

Strategies for Couples:What to Consider When Both Persons Have Special Needs.

Different couples, different needsLet’s look at two supposed situations (created for illustrative purposes; not actual couples), which may reflect your own circumstances.

Couple #1, Both individuals in our first couple are high func-tioning and can work to supplement their income, but because

they receive government benefits, they’re limited in how much

they can earn* without jeopardizing their benefits. They want

to ensure that when one dies, the other will have funds to pay

for things he or she may want or need.

“We’d want to take a look at the couple’s complete financial

situation and learn more about their lifestyle before reviewing

options with the couple,” says Bayer. A savings account or other

type of investment in their names could affect their eligibility

for government benefits, but they may want to consider creating

a special needs trust. The couple might have separate trusts or

one shared trust, depending on what’s most suitable for them.

More steps What else might a couple with special needs do? Here are some ideas.

Government benefits. We’ve said it before, we’ll say it again.

Know the income and asset levels that will keep you eligible

for benefits and maintain those levels. Re-qualifying for bene-

fits, if you lose them, will take time and energy, and while

you wait for approval (many months or even a year or more),

your financial security suffers.

Establish a team. “You need a team who can work together for

your benefit,” cautions Bayer. “Use pros who are experienced

in helping people with special needs – a good lawyer and

financial pro who knows the nuances of a strategy for special

needs, your banker or accountant – people who can help you

with Social Security benefits, who can be your real advocates,

who can work with others involved in your well being.”

Life insurance. There are many ways life insurance is used in

strategies – insuring lives of the individuals with special needs,

parents, grandparents, siblings, or others – but there are many

types of policies, and many factors come into play before a

decision can be made.” Additionally, a parent, grandparent, or

other relative might use a life insurance policy to fund an SNT

for the individual with special needs.

Earnings beyond Social Security. You’ll probably want your

income to be more than just Social Security benefits. A high-

functioning couple might work and earn income (keeping it

within the requirements to maintain eligibility), or a couple

might receive support from parents or other loved ones. Gifts

of money or assets can be directed to an SNT. Trust funds can

then be used for the sole benefit of the trust beneficiary(ies)

to pay for things such as caregiver services, therapies and

equipment not covered by Medicare, housing expenses,

furniture, school tuition and expenses, entertainment, vacations,

and even to purchase gifts for the beneficiary(ies) to give

to others.

Advocates and personal guardians. At times, an advocate

(friend, family member, attorney, SNT trustee, or even an

institution) can help the couple make decisions, secure benefits,

provide advice, and so forth, especially if the couple faces

intellectual challenges. You may also want to name someone

as legal guardian to make decisions and provide support related

to finances, personal assistance, or both. “It’s an awesome

responsibility,” cautions Bayer, “so choose carefully.”

Inform others. After you’ve created a

financial strategy, tell friends and family.

“Talk to grandparents and others who

may be putting money aside for you,”

says Bayer. “Their gift may jeopardize

government benefits or might work

harder for you if incorporated into your

already-established strategy.”

Review your financial strategy. Once

established, plan to review your strategy

annually and whenever a major event

occurs. Think ahead to what your future

might hold. If you have children, or plan

to one day, incorporate the entire family’s

current and future needs into your

strategy and make changes as needed.

What’s your reality?The examples at the beginning of this

article are general and incomplete

descriptions of two fictional couples

with special needs. In reality, we could

continue to create an unlimited number

of scenarios, and still we may not exactly

describe the situation faced by you or a

loved one. Our intent was to open your

eyes to options you may not have been

aware of and show that there may be

ways to resolve concerns, improve your

current financial picture, and put strate-

gies in place for a more secure future.

Talk to a financial professional or attorney

who has training and experience in

helping individuals, couples, and families

with special needs.

* Limits for SSI and SSDI may differ. Visit , call 1-800-772-1213 or talk to your case worker formore information.

* The Special Care Planner receives advanced training and information in estate and tax planningconcepts, special needs trusts, governmentprograms, and the emotional dynamics of workingwith people with disabilities and other special needsand their families. The certificate program is offeredby The American College in Bryn Mawr, PA,exclusively for MassMutual financial professionals.State insurance departments recognize that theSpecial Care Planner certificate program providesessential information on the profession of specialcare by granting continuing education (CE) credits(varies by state).

A Special Care Planner through MassMutual’sSpecialCareSM program can assist parents in draftingLetters of Intent and can help make a difference in thequality of life for an individual with special needs,their caregiver and other family members. ThroughSpecialCare you will learn valuable financial strategies,identify financial strategy solutions, access vital information, and meet certified specialists who willwork with you and your professional advisors – yourbanker, accountant or financial planner, lawyer, socialworkers and health care providers – to review yourfinancial picture and offer options to fit the needs ofeach situation. For more details, visit MassMutual’swebsite at http://www.MassMutual.com/specialcare, or call 1-(800)-272-2216.

About MassMutualMassMutual Financial Group is the marketing namefor Massachusetts Mutual Life Insurance Company(MassMutual) and its affiliated companies and salesrepresentatives. Assets under management includeassets and certain external investment fundsmanaged by MassMutual's subsidiaries.

Founded in 1851, MassMutual is a mutually ownedfinancial protection, accumulation and income management company headquartered in Springfield,Mass. MassMutual’s major affiliates include:OppenheimerFunds, Inc.; Babson CapitalManagement LLC; Baring Asset ManagementLimited; Cornerstone Real Estate Advisers LLC; MMLInvestors Services, Inc., member FINRA and SiPC(www.finra.org and www.sipc.org), MassMutualInternational LLC and The MassMutual TrustCompany, FSB. MassMutual is on the Internet atwww.massmutual.com.

The information provided is not written or intendedas tax or legal advice and may not be relied on forpurposes of avoiding any Federal tax penalties.MassMutual, its employees and representatives arenot authorized to give tax or legal advice. Individualsare encouraged to seek advice from their own tax orlegal counsel. Individuals involved in the estateplanning process should work with an estateplanning team, including their own personal legalor tax counsel.

MassMutual has carried the Exceptional Parent (EP)Symbol of Excellence since receiving it in 2004 inrecognition of its commitment and service to peoplewith disabilities and other special needs and their families.

Massachusetts Mutual Life Insurance Company, Springfield, MA. www.massmutual.com. MassMutual Financial Group is a marketing name forMassachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives.

Reprinted with the expressed consent and approval of Exceptional Parent, a monthly magazine for families and professionals dealing with individuals with disabilities and special health care needs.Digital Subscription cost is $19.95 per year for 12 issues. Call (800) 372-7368. Offices at 416 Main Street, Johnstown, PA 15901 ©2010

Massachusetts Mutual Life Insurance Company and affiliates, Springfield, MA 01111-0001 www.massmutual.com

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