Special needs children present special financial considerations.

Parents of children with special needs provide necessary medical or professional help, but are generally unprepared to meet the child's long-term financial requirements, a survey conducted for MetLife (MET) concluded.

The survey found that 60% of parents don't expect their child ever to be financially independent or to handle their own food, shelter, clothing and medical care. However, 68% of parents don't have a will and 29% have done nothing to secure their children's financial future.

"It's important to avoid misconceptions about special needs planning," says Brian Finn, MetLife National Director of MetDESK. "Purchasing a large life insurance plan or amassing a large amount of savings will not provide the future security your child needs. Many families who do have some assets may assume that they are not eligible for government assistance. However, government benefits are available to all families to help relieve the cost of care."

Special needs can range from developmental delays and mental conditions to profound challenges such as Down's Syndrome and paralysis. The 2000 U.S. Census found about one of every 26 of the nation's 72.3 million families reported raising a child with a disability.

MetLife's survey found that most children with special needs have health insurance or receive help from a government program, including Medicaid. However, the survey found that, on average, parents spend $326 a month on out-of-pocket medical expenses. The total jumps to $379 a month for children with medical problems.

MetLife says parents need to be sure their child's assets don't exceed the $2,000 federal limit because holdings in excess of the limit make the kid ineligible for some government benefits.

The solution: a special trust. Assets above the limit are owned by the trust and the trustee has the authority to manage the money. The trust can supplement governmental benefits. It can be used for checkups, training, education, insurance premiums, home care, rehabilitation as well as entertainment and travel. The trust can be used to be keep a personal injury settlement or verdict from jeopardizing government benefits.

Yet the survey found that 84% percent of families haven't established a special trust to preserve their child's eligibility for government benefits.

Trusts are governed by state law and you need to talk to an attorney to set one up. Go to a specialist because the legal points are fine and attorneys aren't cheap.

"MetDESK recommends that parents write a letter of intent explaining what they want for the future of their child," Finn says. "This document covers lifestyle issues that require decisions regarding residence, education, employment, social activities, religious affiliation, medical care, guardianship and trustees. No detail is too small for a letter of intent. Parents should be specific about every aspect of their child's life."

Parents should also name a medical guardian to make medical decisions once the child reaches age 18.

Early diagnosis of a child's condition leads to early intervention, including occupational therapy, speech training and counseling. The goal: reduce stress, frustration and special services allowing the child to blend with mainstream classmates.

The Individuals with Disabilities Education Act requires that children with special needs receive a free public education up to age 21, schooling as close to home as possible, an assessment of the child's needs and supplemental services as needed.

The survey found that parents devote an average of 24 hours a week caring for their child and about a third of the respondents devote more than 40 hours a week. Half of the parents find it difficult to balance work and family life because of the needs of their child.

Meanwhile, 53% expect their special needs child to be dependent for the rest of their lives, but haven't identified a legal guardian. And 73% of parents haven't set aside money for their special needs child.