Setting up a Discretionary Trust for Children with Special Needs
Every parent wants to care and provide for their children. If you’re the parent of children with special needs, additional assistance is sometimes needed. This could be because of an inability or disability to do certain tasks on their own. You as a parent have a hugely important and significant role and at times it can feel as though it is overlooked.
A lot of carer’s don’t see themselves as such. They see themselves as a supportive mother, father, brother, sister or family friend. In lots of cases, the main carer may have to give up certain things in life, responsibilities, work, activities that harm one’s personal and household finances.
One thing speaking with parents of children with special needs is their concern about how they can provide for them when they can’t. This could be through death, old age or health. That question arises ‘Who will look after them when I’m gone?’ As a parent you want your child to keep their independence and stay healthy and well when you can’t provide that support.
You might also find yourself in the position of being the main financial provider for your child. This will ultimately lead to how to best provide for your child after you’re gone. Also, if you should pass away before making arrangements it’s worth thinking about what would happen? Do they simply inherit from your will? And do they have the ability to manage this, day to day tasks etc. with the need for anyone else?
If any of these thoughts have passed through your head, it’s worth thinking about setting up a discretionary trust for the benefit of your child. A trust is not something that’s only used by wealthy people. Commonly trusts are written into wills to make provisions for children in the case of a parent’s sudden death. They are frequently used by parents of children with special needs to ensure the stability, quality of life and future of their child when they are no longer around.
What is a Trust
A lot of people get confused about what a Trust actually is. It is a legal agreement where the Settlor gives property/money etc. to another person known as the Trustee to look after and manage for a third person who is the ‘Beneficiary’. So, basically with a trust, instead of simply giving cash, property or assets to your child directly. You would give to the Trustee who on your child’s behalf would mind and manage.
Benefits of Setting up a Discretionary Trust
The main reason for putting a trust in place is for your child’s care and support for when you’re not around. A trust gives flexibility and changes over time and circumstances. Things like improved treatments, care or medications may come about. The trustee can approve the cost of the new treatment in line with the parent’s wishes.
Finally, should you need any more details on setting up a discretionary trust. Please contact us today on enquiries@citytrust.ie or call 01-6753140.
