Protecting your loved ones with special needs.
In this blog, I talk a lot about the needs of clients to protect their loved ones: spouses, children, grandchildren, and more. But here’s the story of the biggest, knottiest protection situation I ever tackled: my own family’s.
When the investment is personal
My brother was born with several intellectual and physical challenges, including paranoid schizophrenia, Parkinson’s Disease, and diabetes. For his entire life, my brother lived at home. But after my mother passed away, and with my father growing older, I felt it was time to create a long-term financial plan.
How trusts and annuities go together
In my brother’s case, I helped my father set up two separate special needs trusts. A self-settled trust allowed my brother to transfer financial assets that were in his name to the trust, without having to spend them down or risk jeopardizing his Medicaid benefits.
The second special-needs trust was created as part of my father’s will, to be funded only after he passed away. I used an annuity with a guaranteed lifetime income rider inside the trust to provide a steady amount of income for my brother’s living expenses. This arrangement also provided a tax benefit to help his assets last, since money my brother didn’t need right away was able to grow tax-deferred inside the annuity.
Happily, I was ably to move my father and brother into the same assisted living facility. By the time my father had passed away, my brother had acclimated to his new home. And I was able to ensure his income would continue, protected inside the trusts, for as long as he needed it.
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Contact your Lincoln representative today at 877-533-0265 to learn how you can help make your clients’ legacies last, add protection to their retirement income plans and build deeper relationships. For additional tips and insights, make sure you follow us on and LinkedIn and Twitter .
About the author
For more than 22 years, Christopher H. Price, JD, LLM, CLU®, ChFC®, AVP, Advanced Sales, Lincoln Financial Distributors, has helped advisors and their clients accumulate, distribute and transfer annuity assets by using a holistic approach. In 1983, he began his career as a trust officer with Sovran Bank (now Bank of America). Chris moved into financial planning, and followed that by managing an insurance agency that served some of the wealthiest families in the country. In 1994, Chris joined Delaware Investments, formerly a member of Lincoln Financial Group, where he was responsible for the product management of Delaware mutual funds and eventually Lincoln variable annuities. From 2000 to 2004, Chris used his expertise to help financial advisors and their clients with advanced case issues. In 2005, he transitioned to the Lincoln Advanced Sales team. Chris holds a BA in history from Vassar College, and law and master’s degrees from the Marshall-Wythe School of Law at the College of William & Mary.