Quantcast
Channel: PrivateBanking.com BLOG » Financial Centres
Viewing all articles
Browse latest Browse all 30

Ensure a Safe Future for a Child with Down Syndrome | 7 Financial Advice

0
0

Ensure a Safe Future for a Child with Down Syndrome | 7 Financial Advice

Every child is special to their parents. However, children with disability or down syndrome are unique and need some special care. Their parents are often worried about their future safety and financial security.

Many children with down syndrome cannot live a regular life, go to college, have a job, and earn their living. Therefore, parents often think about saving enough for their children to have a comfortable future, whether they are with them or not.

So, we have shared the seven most important pieces of financial advice that, as a parent, you can execute for the betterment of your child with Down syndrome.

7 Financial Advice to Secure a Safe Future for Your Child with Down Syndrome

These seven pieces of financial advice are the key to having a great future for your children with down syndrome. The sooner you implement your financial strategies, the better for you and your children.

  1. Create a Special Needs Trust

Creating a special needs trust is a long-term financial plan for your child’s secure future. This trust can be used to save money for your child, put the money your child got as gifts, and receive any insurance settlements.

Having a trust is a more logical approach for a child with down syndrome as it does not interfere with the benefits of Medicaid and Supplemental Security Income (SSI). Moreover, the trust can be the beneficiary for your life insurance and assets, ensuring they will not get passed to your child when you die. Having your assets passed onto your child can make them ineligible for SSI.

Parents should create this special need trust during their lifetime and save money for the future. Also, they should allow the trustee to understand the trust’s operations so they can carry it on in their absence.

  1. Name a Trustee

A trustee is a person who will be responsible for taking care of and operating the trust for your child when their parents are dead. It could be a trusted family member, friend, other individuals, or professional trustee. Having a professional trustee or someone skilled enough to manage the trust and pay for the services is better.

A trustee ensures that the money from the trust is being used for the well-being of the child with down syndrome and not anywhere else. Other family or relatives of the child cannot use the money without the trustee’s approval.

  1. Name a Guardian

If you name a guardian, they are legally obliged to take care of your special child after you until they turn 18. This is not an easy responsibility, and as parents, you should investigate to bestow this duty to the most suitable person.

Consider the work they have to do for your child, the time they have to invest for your child, and the money they might need to spend on your child – you need to find someone who can manage all the above responsibilities. Keep in mind that the person in question also has to agree to take the responsibility of becoming a guardian.

  1. Write a Will

A will indicates what should be done to a person’s assets after their death. It is crucial as a parent to write a will beforehand, especially when your child has down syndrome. As we have mentioned earlier, if your children receive your assets, they can lose the benefits of SSI.

You need to write a will to specify that your assets will be added to special needs trust. You will need to hire a lawyer who is specialized in managing laws regarding disability. Once the will is finalized, you, your lawyer, and the guardian each should have copies of the will.

Without a will, the probate judge cannot allow your assets to be included in the trust. It will be prosecuted following the successors’ laws.

  1. Apply for Guardianship

Once a child turns 18, they become adults. Adults can make medical and financial decisions for themselves. However, for children with down syndrome, making decisions might not always be possible. They might not have the freedom to make medical and financial decisions.

You can have a guardian who will supervise your child’s medical treatments and finances. You give the guardian the legal rights to make decisions on your child’s behalf in the absence of parents.

  1. Educate Guardian and Family Members

You must explain to your family members the restrictions on having a child with down syndrome. You should educate your child’s grandparents, uncles, and aunts why they cannot put money on your child’s name. Tell them if they want to contribute to your special child’s expenses, they should put it in the trust.

Moreover, let them know about the treatments, therapies, or other activities that the child requires. Make a list of medicines and dosages your child takes, and give copies to your family members, especially your child’s guardian. Keep them updated with necessary information.

  1. Increase Savings

Savings is important for parents with special children. You don’t know when you will need money for your child. A child with Down syndrome might need special treatments, therapy, or other things that the insurance or school system may or may not cover. You might need to hire a caregiver, special equipment, and so on.

You will need to have some money in hand for any urgent need. Saving is the best thing you can do to have extra money for your child’s needs. No matter how small the amount is, you should consider saving some every month.

Keep in mind that you should not save the money or have it under your child’s name. Another great idea is to hire a special needs advocate. He is a professional who can inform you about different programs, laws, and services for your special child and complete the paperwork. This expert can get you benefits from the local district, so you can consult a local special needs advocate for your child.

To Conclude

A special child will have unique needs throughout their lives, so you as a parent must plan ahead. Unlike other children, your child might not be able to claim what is rightfully theirs after your death. Therefore, you must prepare your finances and do all the procedures for your child’s future.

Although these financial pieces of advice will keep their future safe, you should also consult a special needs attorney in your area for all the legal and financial procedures.



Viewing all articles
Browse latest Browse all 30

Latest Images

Trending Articles





Latest Images