To view our videos, you need to
enable JavaScript. Learn how.
install Adobe Flash 9 or above. Install now.

Then come back here and refresh the page.

Anne Marie Caminiti's daughter Elizabeth was born with developmental disabilities.

“She has mental retardation, so she is quite dependent,” Caminiti says.

Caminiti says Elizabeth’s dependence has made planning for her future an overwhelming concept, one Caminiti admits she avoided thinking about as much as possible.

“When you have a child with a disability and you're looking at their life as an adult, it's frightening,” she says. “So I put it off as long as I could.”

But Anthony Calabrese of the MetLife Center for Special Needs Planning says putting off preparing for your child's future can ultimately leave them at risk – particularly when it comes to money. While you might think you can provide for them in your will, a person with special needs who qualifies for government aid like Medicaid or Supplemental Security Income can only have a certain amount of money in their name.

“It’s $2,000,” Calabrese says. “That's the floor and anything over $2,000, they lose dollar for dollar government benefits.”

In other words, if you leave a dependent with special needs $100,000, they'll have to pay for everything – food, shelter, clothing, services – until only $2,000 is left.

“Then when she gets to the $2,000 floor, she has to apply for the government benefits once again,” Calabrese explains.

But Calabrese says you can protect your child and their financial future by establishing a supplemental needs trust, meaning the money is not left to the individual, it's left to a trust set up in their name. You can use this trust to leave your child or dependent any assets you may own or you can take out a life insurance policy, naming that trust as the beneficiary.

“And that will guarantee, that's the word, guarantee, a large dollar amount to maintain that quality of life,” he says. “That life insurance policy will be there inside that trust.”

In order to establish this trust correctly, Calabrese says it's important to seek the help of a financial planner who specializes in this field, as well as a lawyer who is well-versed in special needs law.

And while she understands how daunting this process can seem, Caminiti says the peace of mind she has now about her daughter's future and quality of life, makes it all worth it.

“She's always going to need a winter coat. She wears special shoes. She loves to go out to dinner, so it's nice to have that money set aside so I can do that for her,” Caminiti says. “I feel much better now that I know that's been done.”