Have you ever thought about this?
A good way to figure this out is to make a list of all the yearly expenses that you currently pay for your child and that you wish for them to have in the future. This will give you an estimate of the main expenses that will have to be paid by the Trust if you weren’t around. Start to add on the cost of home help (that is not provided by the HSE or free by a family member). Transport and other hidden costs that would now have to be paid for.
This is a very complex calculation I am asking you to do because you don’t have the ability to see into the future and more importantly, you don’t know what the real cost will be. But the idea of the exercise is to come to a better realisation of what finances are needed for the future.
If after completing the exercise you calculate a shortfall between the trust life policy and the amount your child will need in the future, then what is the next best thing to do? The first thing is not to stress as you are so far ahead of other families who don’t even have a trust set up. Remember that your child will also be receiving an inheritance from you that will boost the size of their Trust. This should be your next focus. Increasing the size of your assets such as savings, pension, clearing loans and mortgages.
Having set up your policy and arrange the Special Needs Trust you can now breathe a sigh of relief knowing you have taken a huge step in securing your child’s future. As you know the Trust Life Policy will pay out in most cases a minimum of €100,000 and a maximum of €200,000 towards your child’s financial wellbeing.
For more advice on these areas don’t hesitate in contact me as I am here to help you.