By Michael Beloff

There are more than eight million individuals with intellectual or developmental disabilities (IDD) in the U.S. And thanks to early diagnosis, medical advances and access to healthcare, they, along with the rest of the population, are living longer.

This creates an opportunity for firms that want to broaden their service offerings to focus on families with members who have special needs, a term that covers a range of physical and cognitive issues including autism, Down syndrome, cerebral palsy, and traumatic brain injury. Such a client niche can help grow a practice while making an incredible difference in the lives of clients.

My introduction to the field began 26 years ago when my child received an autism diagnosis at an early age. As we explored support options, I remember being overwhelmed by the complex details of state and federal programs and services. I didn't know who to turn to when I realized the financial planning for my son's future would impact ours.

Educating myself on everything from Individualized Education Programs (IEPs), legally binding documents that outlines the special educational plan for a student with disabilities; to ABLE accounts, tax-advantage savings accounts for individuals with disabilities that do not impact means-tested benefits and services; to maintaining necessary government benefits enabled me to deliver stability to my child.

The process also inspired me to create a financial planning practice serving IDD families, one that has proved to be sustainable and incredibly fulfilling both professionally and personally.

Special needs niche. At its core, financial planning for special needs families is similar to traditional financial planning: long- and short-term goals are discussed, assets and liabilities are accounted for to create a complete financial picture, risks are mitigated, and appropriate cash flow is determined to cover expenses.

But a special needs concentration also requires an extra layer of knowledge and skills. Most special needs individuals will live with their families well into adulthood. This affects the family's continuing finances and retirement and estate planning. Given the dependent's need for care after the parent or guardian's death, a plan must account for multiple generations and factor in a variety of long-term financial needs.

Serving this client base successfully also requires empathy and superior communication skills. Clients caring for special needs children can experience enormous emotional stress. The extra costs for doctors, lawyers, and specialists as well as one parent often having to curtail their career to provide care for the child with disabilities can put a strain on family finances. Many parents feel isolated when friends and other family members cannot relate to the challenges they are facing.

Financial professionals striving to deliver comprehensive support to clients must start with transparent and consistent communication. Starting from a place of understanding is critical. Over the years, I have developed a range of targeted articles, blog posts, and presentations on a variety of disability planning topics. These can serve as an entry point to educate clients and prospects on the nuances of special needs planning.

Differing perspectives. The ability to navigate disparate perspectives is imperative when working with clients who care for someone with special needs. It's important to remember almost everyone has the best of intentions, but it is an advisor's legal responsibility to suggest approaches that support a client's best interests.

For example, many families will state that their child will always live with them and never go to a group home. However, many individuals with special needs will outlive their parents by many years, requiring movement out of the home. It is often best to transition adults with disabilities to independent living situations earlier so that they don't lose their home, parents, and caregivers all at the same time and so that parents can participate in the transition.

Practice scope and resources. Although it takes a special kind of advisor to dedicate themselves to this underserved population, they don't have to do it alone.

The financial advisor looking to service this market doesn't have to know all the answers, but he or she needs to be able to point clients in the right direction to get the expert support they need. To this end, advisors can serve as quarterbacks for a team of professionals assembled to help these clients, including specialized attorneys, conservators, benefits counselors, advocates, accountants, trustees, and more.

Becoming a Chartered Special Needs Consultant can improve the advisor's ability to serve as a champion for special needs individuals. The ChSNC designation, sponsored by The American College of Financial Services, teaches advisors the technical and collaborative skills necessary to help clients make plans for the future of someone with special needs. The Academy of Special Needs Planners and the Special Needs Alliance are two groups of estate attorneys that operate in the special needs planning space and have the expertise to create estate plans for special needs families.

The scarcity of qualified and experienced advisors in this segment means that those who are qualified will be much sought after. Helping a family to identify its goals for its disabled members may allow an advisor to assess the family's financial priorities, opening new opportunities to build strong relationships with an eye toward multigenerational planning. Scaling this type of business and working on everything from special needs trust to estate planning can result in successful practices.

As our advances continue to extend the lives of those with disabilities, we can enhance the quality of life these individuals and their families can live. Financial advisors and their firms have a critical role to play.

Michael Beloff, CFP, ChSNC, is a founding partner and wealth advisor at Belvedere Wealth Partners, a part of Stratos Wealth Partners.

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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April 23, 2025 11:25 ET (15:25 GMT)

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