Planning for the Future Part 1

Today I’m bringing to you the first in a series of posts about estate planning and long term savings for your special needs child.

We all worry about our kids and wonder what will happen to them as adults. CLBC is a complete mess at the moment and offers very little to a disabled child transitioning to adulthood. There exists a bare bones disability benefit known as the “Persons with Disabilities” or PWD benefit, but at about $900 per month this doesn’t make for an existence with any luxuries.

It was not that long ago that estate planning for special needs individuals was something for the rich and well connected. Trusts were the financial vehicle of choice although they were out of reach of many families in low to mid income levels. Things are different now.

One of the most dramatic changes in the last few years was the introduction of the RDSP. For the first time there is now a savings vehicle that is biased in favour of those families with modest incomes. Please do not dismiss the RDSP as another minor government program. The long term savings are nothing short of amazing, especially for those with lower incomes.

Adulthood may be years away for your child, but now is the time to start laying the financial groundwork for that time. Some of the topics that I will covering in future posts include:

• Wills
• RDSPs
• RESPs
• RRSPs
• Trusts

To construct a plan for your child’s future you need to have a basic understanding of each of the above topics and over the next couple of months I introduce you to each of them in turn.

I hope these are not topics that fill you with dread, but rather to give you some hope, no matter how stressful your present financial circumstances are. I will try to show you that with a little foresight everyone can plan for a good financial future for their special needs child.