As a parent, your financial situation today will determine the financial future of your dependent adult child with special needs. We have dealt with people in your circumstances. Typically parental concern’s surround how your dependent adults will survive financially without you, and who will manage their financial affairs for them.
Research, care and medication have all improved over time. Life expectancy for someone with Downs Syndrome was 9 years in the 1930s. Thankfully, today someone with Downs Syndrome can expect to live into their 50s, 60s and even 70s. People with special needs are living into old age.
As a parent of a child with special needs, not only do you need to plan for your own financial future, you also need to prepare for the financial future of the dependents you leave behind. Having a long term financial plan is crucial. You will need to ensure that there will be enough for their medical bills, care assistants, homecare, to name but a few. By planning ahead financially, you are ensuring that after your passing, your child will receive the care they need.
In terms of inheritance, you may need to leave your dependent adult with significantly more than your other children. The rationale for this is that they are more likely to need it. It is likely that any other children you may have are in the fortunate position of being able to work to fund their lifestyle.
Creating a will is important for all parents, perhaps it becomes vital for parents of special needs adults. The executors you choose are important – your solicitor will highlight the reasons why. Your financial planner (Infinity Financial Planning) can keep you informed of inheritance tax thresholds and their implications. This will help to avoid a tax liability upon your death, which your loved ones may otherwise be left with. Speaking of tax – are you claiming all tax allowances that you are entitled to – perhaps Infinity Financial Planning can help you here also.
Cash-flow planning, Life cover provision and pension provision are important components of any financial plan. There are wide variety of options in all of these areas. It is important to review them regularly. Firstly, to ensure there is sufficient cover in place. Secondly to take advantage of any tax benefits that may be available. Cost is always a factor compared with benefits, and there have been some welcome improvements in this area recently.
With our qualifications and experience, Infinity Financial Planning can help you with the following:
- How to fund a trust with entitlements
- How to choose the right guardians and trustees
- Ensure you are claiming the correct tax credits
- Build a financial future for your child with special needs
- Provide Inheritance and Estate Planning Advice
There is never a good time to discuss this topic, as understandably it can be emotional.
Currently, is the financial plan you have in place sufficient if you passed away?
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