Special Needs Financial Planning Toronto
Having a financial strategy in place is important for parents of small children but it’s even more important to parents of special-needs children. Your child’s financial future could need a Henson Trust if the child has special needs. The trust will function as a safe vehicle that can hold different types of assets such as cash, investments, and real estate. The trust can hold these assets without jeopardizing your child’s eligibility for benefits like the Ontario Disability Support Program (ODSP).
Henson Trusts are especially valuable components of an estate plan. They allow you to make the trust the beneficiary of your life insurance policy and any other assets that you may have, ensuring that those assets are not inherited by your child in their name. You would not want the assets passed directly to your child because showing more than $5,000 in assets could make your child ineligible for provincial income and health coverage benefits, such as ODSP.
Ron Malis can help you determine what benefits your child is eligible for . Special needs adult children often qualify for benefits from the government.
Financial Advise
The best option for special needs financial advice in Toronto is to consult a financial advisor who has an extensive understanding of ODSP, the Registered Disability Savings Plan and financial strategies that complement these government benefits without jeopardizing them.
The advisor will also advise you on what type of life insurance will work best to meet your needs as well. In some cases, permanent insurance is purchased to fund your legacy, ensuring your child will have the financial resources they need after you have passed away. People view it as being more cost effective for families in the short-run. Considering the likelihood that the financial needs of the individual will last beyond his/her parents’ lifetimes, permanent life insurance (i.e. whole life, universal life, or variable life) should be chosen because, if structured properly, it is often the most cost effective estate planning strategy over the lifetime of the parents. Contact Ron Malis today to see how we can help with your special needs financial advice Toronto.