If you have a child with special needs, you need to take extra steps to ensure that they will be well cared for if you die or become incapable of looking after them. While this is important for any parent, the fact your child may need assistance for the rest of their life makes it imperative in your case.
Failing to plan could have severe financial consequences
Looking after someone with special needs requires time and energy. There may come the point when you need to pay someone to do this, and it will not be cheap. While there is government aid available to fund this, you or your child will end up paying yourselves if it is determined that you have the means to do so. These expenses could drain your resources, leaving nothing for you and the rest of your family.
The money you put in to a special needs trust will not be counted by government agencies when assessing benefits claims. It allows your child to obtain financial help. Remember that someone with special needs might not have the same ability to earn a living. They will need this help to fund their life.
A special needs trust protects your child’s future
By putting money destined for your child in to a special needs trust, you prevent creditors from claiming it. You can also set rules for the trustee to manage the money after you are not around to help them. A special needs trust can be a crucial part of an overall estate plan that protects you, your child with special needs and the rest of your family.