Choosing a person to care for your children is difficult. In fact, for many families, it’s the hardest part of planning their estate.
It’s not easy to think of anyone else, no matter how loving, raising your child.
The problem only gets harder if your child has a disability.
Yet, you can make a tremendous difference in your child’s life by planning ahead.
Do you have a family member that can’t be trusted to responsibly deal with money?
Maybe they are too young or too old to maturely handle a substantial inheritance. Perhaps they have mental or psychological illnesses.
Perhaps they are addicted to illicit drugs, gambling or alcohol. Or maybe they’re just a fool with money, and are too impulsive to ever save or stick to a budget.
Parents of a child with special needs face unique challenges when planning their estates, and unless they address them correctly, they risk making mistakes that could have long-term, costly consequences for their child.
For example, they may make the child ineligible for important federal government benefits once he or she becomes an adult, and they may leave their child without the financial resources he or she needs to live the same kind of life they provided when they were alive.
The mistakes that parents of a special needs child often make when they are planning their estates can have long-term negative consequences for the child and significantly impact his or her lifestyle once the parents are deceased or become incapacitated and can no longer look out for their special needs son or daughter.
Special needs beneficiaries (often children) are those that need extra care because of a disability, such as autism, cerebral palsy, mental retardation, or other physical or mental condition. Many Australian parents have children with special needs and know all too well about the extra care they require, the government benefits they rely on, and the financial challenges they face.
Many families with special needs children need to rely on Medicare and Centrelink to help with the high cost of health care. This financial support can continue throughout the child’s life. Parents and grandparents of special needs children and adults may want to provide for their disabled loved ones in their Will but they do not want to risk losing the child’s eligibility for public benefits. A Special Disability Trust is the answer.
A Special Disability Trust (sometimes called a Special Needs Trust) allows a person with a physical or mental disability to have assets held in a particular type of government-approved trust and those assets will be excluded from consideration for purposes of qualifying for certain government benefits.
Expenses that can be paid for by the trust may be such items as special medical aids & equipment, medical & dental needs, medication, accommodation, entertainment & transportation needs.