1191839 SIP myths you must know!

Compared to normal children, differently-abled children require more financial support for their care and education. If more assets are left for them in inheritance, concerns tend to increase. The lifelong expenses of such children, the appointment of guardians, the division of property among members, and the needs of other family members create worries that parents cannot live with ease. According to the 2011 census, there are 2.68 crore (26.8 million) differently-abled individuals in the country. A report by UNESCO and the Tata Institute of Social Sciences reveals that in the year 2019, there were approximately 7.8 million children under the age of 19 with disabilities in India.

It is crucial to pay attention to estate planning for such children because claiming a share in ancestral property often involves complex legal procedures. Disputes over property division within the family can escalate to the point where court cases drag on for years, making it even more challenging if the child has a disability. These children do not have any special rights in ancestral property.  Any legal hurdle can jeopardise their future.

Through estate planning, you can ensure that the child’s care continues throughout their lifetime. Now, the question is, what can be done? Parents are legally considered guardians of their children up to the age of 18. Once the child reaches the age of majority, they can make decisions on their own.

However, children with special needs often require support throughout their lives, which is why parents may need to become legal guardians even after the child turns 18. However, a major question arises: who will take care of the child and manage the property after the parents? Arrangements for this need to be made in advance. Special needs children often require a significant amount of financial support, and during this time, the needs of other family members may be overlooked.

In such situations, concerns about property division, the responsibility of the child’s care, and other worries can be addressed by drafting a will with the help of a qualified lawyer. Due to the incapacity to make decisions, parents may hesitate to directly allocate property and cash to a child with special needs. They will need to find a suitable guardian for managing these assets.

Establishing a private trust can go a long way in alleviating this concern. How the trust will be managed and income distributed should be carefully determined? These are some issues that parents can address by creating a trust deed. Personal finance expert Jitendra Solanki states that providing for housing, healthcare, education, and daily needs for children with special needs will require a substantial amount of money. Most of these expenses will need to be covered throughout their lifetime.Therefore, when planning the estate for a child, it is essential to first estimate how much money will be sufficient to cover their lifelong expenses.

Start planning for your child’s future as soon as possible so that your beloved one does not face a shortage of funds after you.