savings

[Mumt45]

hi I have a ten year old child, with rare genetic condition, nonverbal, epileptic, learning disabilities, my question is the future, I have life insurance which will cover my funeral costs & leave a little for my child & her older sister, I have always worried about saving for my disabled child ( as will they not take it all from her if I pass away & use it for her care) so I’ve always just enjoyed life with her now & spent it on her, but is there a way I can save some for her ie: a certain amount which she can keep many thanks.

[Jofisher]

I have put money in trust for my son so it won’t affect his benefits speak to a solicitor about it and they can advise you

[Mumt45 in reply to Jofisher]

Many thanks

[Eeviee]

Hi. If your daughter gets social care support then when she is 18 her finances will be assessed to see if she can make a financial contribution to her care. If this is the case then any savings she has will be considered which is why parents avoid giving their children any savings directly in the child’s name. They set up a discretionary trust. Secondly your child will not be able to manage her own finances and so a trust is necessary here too. Contact mencap will and trust service for advice.

[LDAutie in reply to Eeviee]

seconded Eeviee my pareents were helped out by mencap with will and trust advice, i dont understand anything about them,i never even knew they were doing it but they told me it will be put into a trust and my sister will be in charge.

[Steve__]

Hi - good question - there is a figure where the council ceases funding and spends the person's money instead - I don't want to quote it in case it's different for different counties or times, but the kind of thing you're suggesting is likely to cross the line. Trusts is the way to go, and professional advice the best way to set one up! Good luck, Steve