Parenting is not easy especially when your child is having some special needs. These special children need special treatment from their parents and even in the absence of them. Thinking about you not being there by the side of your child can take a toll on you but this is the reality of life that someday or the other you have to leave your child behind to face the world. However, with proper succession planning and estate planning, you can secure your child’s future to some extent. This article will try to help you understand the steps you can take for succession planning for your child with special needs.
What is succession planning?
Succession planning is the process of transferring your properties, business, and assets to your child. As the duty of a parent continues even after they pass away, so securing the future of your child depends on how you plan your estate so that your child can be benefitted.
All your life, you have worked hard to give a great life to your family and you want the same standard of living to continue for your loved ones in your absence too. Moreover, all your investments, assets that you accumulated over time with hard work and planning, you would want to pass it to your most loved person and part of you i.e. your child. You wouldn’t want anyone else to use your properties, business, or any asset for that matter. There are many steps involved in this process that needs to be taken care of thoroughly especially when you are doing it for a child with special needs.
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How to do it?
The process of succession planning for a child with special needs mainly has two major steps –
1. Formation of a Trust:
There are several estate and succession planning entities that are prudent in dealing with the child with special needs. The first step in succession planning for your child is finding such a trustee company that can be trusted for taking care of your child after your demise. With the help of this company, you need to set up a trust (privately held) and the trust will provide all support required for the child after his or her parents’ demise. The assets of the parents are required to be included in the trust. They need to decide and fix how those assets will be used for their child. The income generated from those assets will be used for the child’s different needs, be it medical or educational or daily requirements or financial. The parents need to fix the method of payment as well and the date of commencement of payment. Now the trust has to be managed by the independent corporate trustee as well as the legal guardian or relatives of the child whom the parents appoint.
2. Appointing a legal guardian:
So, appointing a legal guardian for the child is necessary. It can be anyone from the family or others who is well aware of the needs of the child, preferences, habits, medical needs, and others. This is an important aspect of succession planning to keep an eye on the expenses of the trust and check whether these expenses are genuine or not.
When should you start succession planning?
Finding the right trustee company is very crucial for your child and your asset. It is not about just creating trust and a deed where the terms and conditions will be mentioned. It is about how well the trustee and the appointed legal guardian can handle those responsibilities and prudently use your assets to give the life you desired for your child in your absence. So, it is better for you to start as early as possible. There is nothing like you have to do it after you retire. You can do it right after your child is born as well.
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Children with special needs are really special to this world. They are differently-abled because they have something different and rare talent in them, which you as a parent need to explore and let them grow freely. However, life is very uncertain, and survival is tough for a child with special needs without the parents. So, to secure their future to at least some extent, succession planning is really crucial. If you have a special child then plan for its future as early as possible in life; connect with us at Tata Capital Wealth and we shall guide you ahead.