Here's How To Plan For A Disabled Childs Finances

Planning finances is a prudent thing to do and many people do it. Each person has their own objectives and consequently respective stratagems. While, Child financial planning for most people has just aspects like health, education and lifestyle, parents of special children have a more formidable task to contend with here.
For special children parents, financial planning must be done beyond the usual college education. In fact the strategy must incorporate a tailor made financial plan to meet various time horizons with respect to not only education and marriage but also a bigger time horizon depending on the extent of disability of the child. Some of the basic things which must be addressed by the plan are:

Once the parents are gone, how will the child or by that time a grown adult be taken care of and who will oversee the care process.

More presently, the how child financial planning will incorporate the special therapy expenses of the little one in reference to the current earning capacity of the family.

Once the child reaches adulthood, how his lifestyle expenses would be met.
The parents need to envision the kind of lifestyle they intend for their children.

The requirement for medical and transportation can become a challenge depending on mental or physical disability.
Such parents must plan further and as such have the following options:

Trusts and wills go a long way in caring for a special needs child even after the life time of parents. One may create a special needs trust with money received by the child as gifts as well as regular savings.

Appointing a suitable guardian or a conservator becomes essential, and one may be required not only in the absence of parents but also from childhood or adolescence in case of working parents.

A protection for the breadwinner’s contribution to the family earning pool should be done by taking adequate or higher sum assured term or life insurance and the same would get further protection if working mothers were to do so under the MWP or Married women protection Act.

Budgeting for specific medical appliances and other supportive material should also be done keeping inflation and the rising costs in mind with preferably annuities or periodic fixed deposits.

Education of a disabled or special child must be done more carefully and the same will require a carefully stitched savings build up plan in a portfolio (more mutual funds, ULIPS and equities) which will address the requirements as and when they arise.

Retirement of the parents must also be planned.

Financial planning for kids with special needs must be done keeping in mind need advance planning. Thus, financial planning helps make their life somewhat bearable as well as of those family members around.

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