Contributors
You have a special needs child, and you are doing your best to provide and care for your child. What will happen when the child becomes an adult? What will happen to the needs of your child when you are sick or no longer around to provide the care and support?
Consider this story:
Matt and Minnie are a middle-income couple in their late 30s. They have two children, Bobby (aged 15) and Susan (aged 5). Susan has a special needs condition (which on the spectrum of disorder is classified as mild) with symptoms that make her very impressionable. Susan was assessed as having insufficient mental capacity to make decisions for her own welfare. She will be able to develop and grow with therapy but will always remain vulnerable. Matt and Minnie work hard to support the family but it is taking a toll. Apart from the usual stresses of making a living, caring for Susan takes time and effort, which is disruptive to their work schedules.
In the short term, Matt and Minnie try to cope but they worry of finances for the future. They have tried to explain to Bobby who would be caring for Susan. This idea is facing increasing resistance and causing resentment in Bobby who feels they love Susan more than they love him. Increasingly, Matt and Minnie are worried about Susan’s future welfare and wonder how Susan will cope when they are gone.
Sounds familiar? This is not a subject that is openly discussed in our Asian society. Persons with special needs and their families who care for them still live in a relative shadow. There may be help groups and support groups to help them cope on a day-to-day basis. Yet, the troubling question remains: “How will Susan cope when Matt and Minnie are gone?”
In this article, I will be suggesting a holistic solution that involves deputyship, the Special Needs Trust Company (SNTC), insurance and the making of your Will.
Let’s look at each of these in detail:
DEPUTYSHIP
In Singapore, a child is considered to be an adult at 21 years of age and is expected to make independent decisions. You, as a parent, will no longer not be able to make decisions for or act on the child’s behalf. For a parent of a child with special needs, you will need to put in place deputyship arrangements before the child turns 21.
A deputy is a court-appointed individual who is granted specific powers by the court to make decisions for the benefit and welfare of the person with special needs. If your child is in a special needs school, enquire about any assistance they can give to help you apply for deputyship or visit this link for more information: www.msf.gov.sg/opg/Pages/How-Do-I-Apply-For-the-Appointment-of-a-Deputy.aspx.
Deputyship allows you answer the question, “Who will care for my special needs child through the years”.
SNTC
Consider setting up a trust for your special needs child. A trust is a formal legal arrangement where you (settlor) are placing assets into the hands of a third party (trustee). The trustee is bound by law to administer the assets for the benefit of the nominated beneficiary (your special needs child). The trust you set up can take care of your special needs child and it will be around even when you have passed on. Do note that when you set up the trust, you lose ownership of the assets that you place into the trust. Trust service providers also typically charge fees for their services, making such arrangements relatively costly. Do however consider the SNTC which is a cost-effective option.
SNTC case managers will go through a holistic needs assessment of the beneficiary together with the caregiving-settlor, focusing entirely on the beneficiary’s well-being. A SNTC trust can only accept cash assets. Follow this link to find out more: www.sntc.org.sg/services/trust-services.
Setting up a trust structure helps you to answer the question, “How to provide for my special needs child when I am no longer around?”
INSURANCE
Many families say, “we can barely make ends meet each month, where to find the cash in order to plan for the future?” Insurance can help to create the legacy. Insurance is a legal contract where the insurance company agrees to make payment of a specified amount to a specified beneficiary upon the happening of a specific event.
The SNTC has teamed up with Great Eastern, so that caregivers can via the SNTC trust purchase insurance to benefit their special needs child – www.businesstimes.com.sg/life-culture/parents-of-special-needs-children-now-able-to-future-proof-long-term-financial-needs.
Insurance helps you to answer the question, “How do I create enough cash to care for my special needs child future needs?”
MAKING YOUR WILL
Make your Will. If you do not have a Will, your assets are according to the Laws of Intestacy in fixed proportions to fixed categories of beneficiaries. This may not be a good thing as you may want to make special arrangements or provide more for your special needs child.
A Will is a formal legal document that allows you to consciously distribute your estate according to your wishes. You can nominate someone (an executor) to handle your estate upon your passing and distribute in according to your wishes as expressed in the Will. In practical terms, it is your love letter to your loved ones where you say, “I loved you and provided for you even after I am gone”. For example, if you have set up a SNTC trust, you can direct the executor to convert your assets into ready money and pay it into the trust to care for your special needs child.
Making your Will answers the question, “How can I provide for my special needs child after I am gone but also show love for my other family members?”
Conclusion
Start planning early for the future of your special needs child. The holistic approach as suggested will help. With proper planning in place, it is possible to protect and provide for your loved one with special needs even as they age.
Francis Goh is a mediator, problem solver and legal advisor. He is the head of Private Client Advisory at Harry Elias Partnership LLP.
(PHOTO CREDIT: Unsplash/Nathan Anderson)
