
If you are a parents for the special one, you probably well aware that the care for them is far more different from the other child. Estate planning for special needs children is challenging because dependents’ condition will change over time, so it is crucial to have a plan in place that is able to provide lifelong support for them in terms of personal care and financial well being.
As a parents, no one know much better than yourself what your child needs every second and every day of their life. Have you ever imagine what would they be without you caring for them ? It could be at death, or a chronic or debilitating illness or catastrophic injury that impairs your ability to care for yourself and your child. These events cause emotional and often financial hardship.
If the unexpected events arose, where should your children live with? Have you appointed the right guardian for them ? Do you have a Will which can personally care for them ? How about their financial support ? How much support will they need day-to-day? Will they work? How will they spend their leisure time?
Is your guardian trustworthy to handle the estates you left behind for the use of your special kids ? How can you assure the money is solely for the special needs usage ? Let’s say they meet the trustworthy requirement, can they outlive the child ?
Do you know a Will distribution takes around 1-2 years ? Within this period of time, where should the funding for your special kids coming from ?
What if disability such as coma, disappeared (just like MH370 case) or other unexpected illnesses hit us ? These events stop a written Will to open its door (because death did not occur), resulting to all your assets get stuck. Have you prepared for this ?
Many tend to leave to siblings who are willing to take care of the special needs. Bear in mind that they only have moral obligation. Say for example a brother of a special needs child who is very reliable and agreed to take up this added responsibility to take care of him. Somehow, divorce, job loss, unexpected death can derail even the best intentional plan.
To make a complete estate plan for the special one, we need a combination of a written Will and setting up a Trust. A Trust is a vehicle that can blend in as protection for these special needs children by setting aside funds for them. Trust can ensure that their inheritance doesn’t jeopardize eligibility for those payments. Special needs trust can limit how the money going to use which provides greater flexibility and impose fewer limits on disbursements.
Choose a Trustee who are responsible, ethical and knowledgeable enough to act in your child’s best interest. Make sure the trustee you choose can outlive the one you want to care for.
To find out more, contact us now.
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