Financial Decisions You Need to Make About Your Kid With Special Needs
To any person with a kid with special needs, making financial planning for the kid in question tends to be a priority thing. A parent with a child with special needs would have to worry beyond getting school fees for a college degree for his or her kid. Among the worries the parent tends to have included how the kid will get special therapies, who will pay his or her needs when he or she is finally an adult or where and how the child lives when one is gone. You would need to figure out ways of setting aside money for your kid with special needs without necessarily inconveniencing the government benefits. In the same manner, you would need to consider figuring out how your child’s emotional needs would be met if something happened to you.
You would need to begin by creating a special need trust for your child with special needs. A trust offers an avenue where one can save for his or her kid with special needs without interfering with the benefits he or she receives from the government. You may not be in a position to pay a trust at the moment but is always essential to set up one. You would be sure that the trust becomes the beneficiary of your life estate and life insurance policy and at the same time avoid instances where your assets are passed to your child the moment you die. You would easily forfeit the benefits extended to kids with special needs any time you pass asset worth more than $2,000.
It would also be wise to think about your assets just in case you died. In a case where you do not a will, there are high chances that your assets will be transferred to you something that may interfere with the government’s benefits to the kids. It would be critical to specify the guardian to the kid with special needs the moment you pass on. It would also be wise to hire a lawyer who is good at handling issues to do with special needs. The trustee comes in to manage the special needs of your child the moment you pass on. You would also need to remember that a trustee can either be an institution such as a bank or an independent professional trustee or an individual such as a family member, a lawyer or even a friend. The trustee tends to focus on having the money spent on the child’s special needs which involves supervising the money in the trust. You would also need to consider educating your family, write a letter of intent, build your savings as well as ensure that your child has his or her indipendence. It would be critical to remember to speak to a professional especially on financial planning for your kid with special needs.
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