How can I provide for the future of my child with a disability?

We all want the best for our children. Having a child with a disability can create its own anxieties about their future. It is not uncommon for parents to think about what care and support is available to your child if you are no longer able to care for them. There are several steps you can take to provide for the future of your child with a disability.

1. Create a Will: A Will allows you to specifically allocate a proportion of your estate to your child with a disability. A Will also allows you to appoint a guardian to look after your children until they turn 18 or a trustee to financially manage your child’s inheritance.

2. Appoint an Enduring Power of Attorney: An Enduring Power of Attorney can make financial and legal decisions on your behalf, if you are unable to make decisions for yourself. This can be especially important if lose capacity but still need to provide financially for a child with a disability.

4. Setup a Special Disability Trust: A Special Disability Trust can be set up to provide for the future accommodation and care needs of your child, if they have a severe disability. The trust can hold assets and provide for you child (up to a certain value, (currently $813,250 but indexed on July 1 each year), without it impacting on their pension support payments. There are strict criteria for Special Disability Trusts, which you can read our blog “What are the Requirements of a Special Disability Trust?”

5.  Setup a Testamentary Trust: If your child doesn’t meet the criteria for a Special Disability Trust, then you could look at setting up a Testamentary Trust. This can be established through your Will. The trust can provide for the care and financial needs of your child. The Testamentary Trust comes into effect on your death and is managed by a trustee.

6. Look at Government Supports: Check to see if your child can receive disability services under the National Disability Insurance Scheme (NDIS). You can also contact Centrelink to ensure your child is receiving all the benefits they are entitled too.

7. Seek Legal Advice: We recommend that you speak to a firm that specialises in disability and estate planning. We offer new clients a free thirty-minute consultation. Contact us to speak to an estate planning lawyer.

8. Financial Planning: Seek financial advice from a financial planner to ensure your investments and savings will provide for the needs of your child. We recommend speaking to Price Financial Intelligence. 

Please note that it is important that you regularly review your legal documents, to ensure they are up to date and reflect the care needs of your child with a disability.

Photo by Antoni Shkraba.

Any information on this website is general in nature and should not be taken as personal legal advice. We recommend that you speak to a lawyer about your personal circumstances.