How can parents secure the financial future of a child with special needs? | Mint

If you have a special needs child with a communication disability, how can you best secure its financial future?

-Name withheld on request

For parents of children with special needs, especially those with communication disabilities, ensuring financial security and sustained care is a top priority. Here’s a comprehensive guide on the key steps to secure their future:

Establishing a private trust

Setting up a private trust with clear directives on fund utilization can be essential. The trust should cover all areas of the child’s well-being, including education, medical expenses, and personal care. Appointing successor trustees ensures continuity in case the initial trustee can no longer serve, safeguarding the child’s interests over time.

Guardianship planning

Naming a legal guardian is crucial for advocating the child’s financial and personal welfare. The guardian should have a strong understanding of the child’s unique needs and work closely with the trustee to maximize the effectiveness of financial resources. It’s also wise to select an alternate guardian to step in if the primary guardian becomes unavailable.

Life insurance policies

Consider taking a life insurance policy that names the trust as the beneficiary. A permanent policy, such as whole life insurance, provides ongoing coverage, ensuring the trust has financial support even after the parents’ passing.

Maximizing government benefits

Proper structuring of the trust can help maintain the child’s eligibility for key government benefits, ensuring access to programmes like Sarva Shiksha Abhiyan, the Deendayal Disabled Rehabilitation Scheme, and the Integrated Child Development Services.

Periodic trust reviews

Regular reviews and updates are essential to keep the trust aligned with any changes in legislation, regulations, or the child’s needs. Establishing a feedback loop with caregivers and professionals involved in the child’s care can help the trust’s management adapt as requirements evolve.

Aditya Chopra is managing partner, and Moxy Shah is associate at the Victoriam Legalis.