Special Needs Trust

I've delayed long enough... Deceived myself long enough... putting on high hopes but it doesn't seem to be happening. Trying to accept the truth and plan for her future.

Over the weekends, hus and i went for a financial talk for Special Needs Kids by Special Needs Trust Center, a non-profit trust company in Singapore set up to provide trust services for the benefit of persons with special needs. SNTC is jointly supported by the Ministry of Community Development, Youth and Sports (MCYS) and National Council of Social Service (NCSS). SNTC partners with Insolvency and Public Trustee Office to manage trusts’assets.

During the talk, the speaker highlighted the need for such trust by citing two real life examples. In the two examples given, when the parents of special needs person passed on leaving them a sum of money. With the temptation of cash on hand, the guardian/caretaker had misused and squander away the money instead for the special needs person. Even if that does not happen, would these trustees have the time and expertise to ensure these assets are spent wisely by the the special needs person deputy?

The process of setting up a trust:
Book an appointment with the case manager (social worker) to work our a care plan - is like a financial plan with projection of the amount of money needed for the special needs person living expenditure after settlor (The person who set up the trust - usually would be the parents) had passed on. Settlor would have to draw letter of intent as to how the money is to disbursed. The care plan and letter of intent will be reviewed annually to ensure the projections are on track and update any new expenditures for the special needs person. Once the settlor dies or capacities disabled, the trustee would work with the guardian/deputy to disburse the money in accordance to the letter of Intent.

The setup fee for the trust is $1,500. Annual trustee fee is $250 per year. When the settlor dies, the fee is $400 per year. The minimum trust fund size is $5000 and each top up is minimum of $500 on monthly/annually/quarterly/ahhoc basis. The trust assets are invested with the Insolvency and Public Trustee Office earning an interest declared annually. For 2009, 2010 and 2011, the interests were 3.46%, 3.52% and 2.82% respectively. These assets are guaranteed by the Singapore government. The trust is irrevocable and hence will be protected from the creditors and bankruptcy of the settlor, so the special needs person can be assured that the assets set aside will be there for her regardless of the settlor’s financial situation.

P/S: Terms and conditions: 1. The beneficiary must be a special needs person. 2. the beneficiary must be Singaporean/Singapore PR. 3. the beneficiary must be located in Singapore to be provided by Singapore Acts.

During the break time, i talked to a parents who was discusing about the trust. The mommy told me that she will sign up for one for her special needs kid. She had been very worried the financial especially when she is gone. She had approached many insurance company and none had accepted her child condition. Very sad but this is true.

After the talk, i strongly recommend those who has a special needs person in the family to sign up for a special needs trust to ensure the money you left behind after you are gone are well spent on your love ones who are in special needs. We have booked an appointment next week with a case manager to setup a trust for Janelle. She is who she is, we have to accept it and plan for her. If one day miracle happens, she still can use this money for things that she wants to do at that time. no harm. isn't it?