How do you make sure that your special needs child is well-provided for even after you are gone? Do you hire someone to care for your child for a lifetime? Or you secure the services of institutions that provide healthcare services? You want to ensure his/her protection and welfare, and this is achieved through the use of a trust for special needs.
Protecting Your Child’s Future With Special Needs Trusts
Trust for Child with Special Needs
A trust ensures that your child with special needs is well-provided for even after you are gone. A trust protects the assets you leave behind for your child with special needs from the clutches of interested relatives or even your other children. Since the money inside a trust is left to the administration of a Trust company and not by just anyone. The Trust Company holding the trust for your child with special needs will not release the funds outright but depending on the conditions you set. The funds are also safe from any creditors who want to stake a claim at whatever assets you leave behind.
But, is a trust enough? Here are the two things that most parents with a child with special needs worry about in terms of the trust for their children with special needs:
- Is the fund inside the trust sufficient to last for a life-long care of the child with special needs?
- Is a caregiving plan also necessary for their children with special needs?
The first question echoes an important point. Funds are the bloodline of any trust, and the possibility of it running out can scare you or any parent. The lost of funds means that your special needs kids would be left with no one caring for them financially, which will result in them not receiving any health care or treatment. How can you make sure that your child will not exhaust the funds of your trust? More on this later.
The second requires an analysis of the extent of the special needs of your child. Do you need to create an intensive caregiving plan for your special needs kid? Do they have routines that need to be followed or are they prone to things like tantrums? Are they able to walk on their own or do they need assistive technology?
Special Needs Trust Company Limited (SNTC)
An SNTC is a non-profit trust company in the country that is founded for the benefit of their children with special needs. It provides a unique trust solution and helps you deal with social issues tied to caring for a child with special needs. SNTC is not an ordinary trust company, but it has IPC status under the government’s Charities Act.
SNTC offers unique features in its services offered; this includes the appointment of a case manager who specialists trained in social work who will work with you the settlor. The case manager coordinates with you to create and develop a customised care plan for your child with special need.
The Special Needs Trust you make for your child can be handled by SNTC with the principal value of the fund guaranteed by the government, and the fees you pay are 90% to 100% subsidised by the Ministry of Social and Family Development.
The only requirement to avail of SNTC’s services is for the beneficiary to be a person with special needs. The beneficiary is substantially disadvantaged in comparison with any equal members of society. Their disadvantage causes them to be unable to secure, retain or advance in:
It’s important to note that SNTC only accepts cash as a settlement. The minimum amount for the initial trust fund is minimal but, you are required to settle further cash into the trust at any point in time.
Funding The Special Needs Trust
It’s common for settlers to nominate or name the trust for their child with special needs as the beneficiary of their will. So, in writing, you will make sure that you name the trust for your child with special needs as a beneficiary. Your insurance policies and CPF savings should also be updated to name the trust as a beneficiary. These nominations would ensure that the trust has timely additional funds in the future.
The trust remains passive and activated in the event that you perish or become incapacitated. The SNTC manager would then visit the beneficiary, your child with special needs, along with the replacement caregiver to assess the immediate needs he or she might have.
Setting up a trust for your child with special needs secures the future and ensure that he or she is well provided for. The government support through the Special Needs Trust Company Limited, and the funding you provide with give solid financial support that your child needs should you die. With these aspects and features in special needs welfare, you can be less worried about their future.