Sep 22, 2015 01:01 PM IST | Source: Moneycontrol.com
Prepare early to pay for special needs of special child
Raising a special needs child requires extra efforts by parents, when they are around. And they should also plan it well in advance, as the child may need a support even when they are not around.
International Money Matters
“There is only one perfect child in the world and every mother has it.” – Chinese proverb
Every child is special; some more so than others. And those need special care and attention. They also need special protection especially when it comes to money matters. It is always a worry for parents that if something unfortunate happened to them, how their child would be taken care of.
Here are a few things that could help:
•Create a list of contact information for your child's doctors, teachers and other medical support people as well as current medications and their dosages and schedules. List down the activities your child shouldn't be doing and list down the child’s routine as well if that is a matter of concern.
•In terms of costs, estimate the costs involved in terms of medical, education and others.
•It is also important to plan your savings keeping the above in mind. Take the help of a financial advisor for planning savings and investments for your child.
•Appoint a guardian. A guardian is the person who lawfully has the power, and is obligated with the responsibility of taking care of your child if you were to die before he/she becomes an adult.
•Make a trust and appoint a trustee. A trustee is the person who will be responsible for managing the trust as per the set guidelines and benefit of your child only. It can be a family member or a friend. It can also be a bank or an advocate. A trustee also ensures the investments of the trust are done as specified in the trust deed.
•All the investments being done for your child should be in the trust’s name and not in your child’s name.
•It is important that the trustee and guardian are not the same person. By separating the roles, you can ensure that checks are in place.
•Communicate with the guardian and the trustee to understand their eagerness in accepting the role. Ideally these should be people who care for you and your family and are responsible. Educate them on what your intention is and how they could help in case of the event taking place.
•Planning their independence: What happens when the child turns a major should also be something that is thought through and drafted in the Trust deed.
•Talk to other family members: While you may have only two people who will be involved in taking care of the child, talk to other family members too of your intention so that there are more people to look out for the child. Although a small number will be not only more manageable but also too many people involved might lead to confusion.