Daily Money Managers and Disability Planning

A Lifeline for Families

In this article, I want to introduce you to an often-overlooked resource in disability planning: Daily Money Managers. I recently read an insightful piece by Diane Hayes from Everyday Money Management about how they helped a client successfully apply for Social Security Disability Insurance (SSDI). After reading it I realized I haven’t seen much attention given to the role a Daily Money Manager could play in the team supporting an individual with disabilities.

I’ve worked alongside and referred clients to Daily Money Managers for years. If you’ve been following the ABCs of Disability Planning podcast, you might remember that back in August 2021, I featured Mindful Money Management as a guest to explain what Daily Money Managers do. You can still listen to that episode here.

Let’s dive in.

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What is a Daily Money Manager?

A Daily Money Manager is a financial professional who helps individuals manage their day-to-day financial tasks. These can include paying bills, budgeting, financial recordkeeping, organizing tax documents, and coordinating with other financial professionals, like accountants or estate planners. When working with a Trustee, they would submit the bill on behalf of the beneficiary to the Trust, and the Trustee would pay it. Daily Money Managers don’t provide investment advice. They are not Financial Advisors. Instead, they’ll work with your Advisor to ensure that everyday financial responsibilities are handled smoothly and accurately.

I’ve found Daily Money Managers to be especially valuable for individuals who struggle with financial management due to cognitive limitations, age, or a lack of time or expertise. They can’t, and won’t, make decisions FOR their clients, which I’m more than okay with. Guardians of the Person and Property and those with Powers of Attorney delegate the day-to-day money management activities while keeping ultimate control and responsibility. This can relieve a lot of stress, especially if you have a lot going on in your life.

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How Does a Daily Money Manager Work with Their Clients?

I’m speaking in general terms as I understand their role. I am not now, nor have I ever been, a Daily Money Manager. So any misrepresentations or errors are my mistake. You’ll want to make sure you understand exactly what your Daily Money Manager will, and won’t, do for you.