Free financial advice for parents of special needs children

If you were unable to take care of your child, who would look after him or her and where would the money come from?

Parents of special needs children with long term or permanent dependence need to be sure that their child is financially supported and cared for should they no longer be able to.

The answer is insurance, an appropriate trust, and a will.

My name is Glyn Lewis-Jones and for 30 years I’ve been advising families in this situation. Every family is different. FindOutFirst gives people the chance to find out more information BEFORE they talk to a financial adviser, insurance broker or lawyer.

Contact us to arrange a phone call with Glyn to talk about your own situation – it’s free and there are no obligations or catches.

Save money and get peace of mind – call 0800 908 907

"We’d always worried about what will happen to our daughter Sarah once we’re gone. Our son is great but we can’t expect him to take care of Sarah financially as well as his own family. Talking to Glyn about it all has been so helpful and now we know what to do – I can’t thank him enough". – M. Graham, Wellington

"Being able to talk to someone who has been there themself and is able to help you look at the whole picture was great. It's the tying it all together that was the most useful; it's not only the money issue or guardians or the other kids, it's the whole lot". – J. Johnson, Palmerston North

“My youngest daughter has Down syndrome and I wanted to make sure she would be taken care of if I die. I called the 0800 number to talk about setting up a family trust. In fact, setting up the trust turned out to be only a small piece of the puzzle – it’s having the money and arrangements in place that I hadn’t really thought about. By changing my life insurance, I’ll also be able to look after my oldest daughter – I’d been worried about not leaving her anything”. – A. Fry, Canterbury

More info

All parents want their children to be happy and healthy. And parents of children with long term or permanent dependence need one more thing, and that is to be sure that their child is financially supported and cared for should they no longer be able to.

In all families with children there is a dependence on the presence and good health of both the breadwinner and the homemaker. This is perhaps more important where there is a long term, dependent child. So if you’re considering life & health insurance, and a trust, as a possible solution, think about the following points.

In some families the siblings are a great help and would naturally be a better choice to run a financial trust for their dependent brother or sister. In other cases however it might be better to have a firm of professional trustees.

The wording of the trust is very important in order to ensure that the extra capital or income going to the dependent person does not affect the level of Government benefits and entitlements. The trust needs to protect the financial position of the dependent person without giving him or her full access to it.

Finding out what other parents, in similar circumstances, have done can be hugely helpful as it gives you more choices. If you have any questions about how all this might apply to your own situation then please phone me.

Personal Story

Names and identifying details have been changed to protect privacy.

Taking care of John.

Martin & Rose Williams had 3 children, Alan & Pam and a younger child, John who had Down’s syndrome. Martin was a builder, Rose was the homemaker and, because Martin was self-employed, he could give Rose extra help at home when it was needed. When the older children married and left home John was spending increasing amounts of time in the community but was still living at home with his parents.

Over the years we talked a lot about what would happen to John when they died. The whole family had made a joint decision that parental assets should be used to supplement the financial assistance John got from the Government and to support him, but they didn’t know if this would be enough in the future. Furthermore, they were concerned that if the money were left directly to John, it would reduce the amount of Government support he received. The solution the family arrived at was to take out life insurance on Mr & Mrs Williams with the benefits (and their other assets) going into a trust, benefiting John. Alan & Pam were two of the trustees and the family decided to include their lawyer as a third trustee to add ‘professional’ balance and assistance. If John dies before Alan & Pam, any money left in the trust would pass back to Alan & Pam or their children.

There is huge variety in terms of needs in families with long-term dependant children and the Williams’ case will not be relevant to every family but I expect there are similarities. And there are almost always ways in which life insurance, trusts and an experienced adviser can help. So if you have any questions about how all this might apply to your own situation then please phone me.

Frequently Asked Questions

Why an insurance policy?

Whilst the parent(s) are earning money and in good health then they can usually manage, more or less. The problem is if either of the parents dies prematurely or becomes ill and cannot work, then, in addition to the emotional fall out, there are financial challenges, which can be huge. That’s when a suitable insurance policy can be a welcome safety net. By using a trust you can choose who takes charge of the money and you leave them guidance as to how you think it should be used.

What’s it all about?

It’s about ensuring that the financial needs and the care of your child will be taken care of regardless of what happens to your life.

How does it work?

You work out what the financial need is and what you can afford and then take out an appropriate insurance policy with a trust to administer the benefits.

What’s the downside?

Cost might be a problem – so just do what you can afford. You might be surprised at how much difference just a little can make. The secret is to use a suitable policy, a flexible trust and have an experienced adviser. It’s also not a pleasant task, planning who would care of your loved ones and how – but you know more about what would work best than any other person. And once those decisions are made, a trust can be set up to ensure the money is safe.