Financial Planning for A Special Child Should be Long Term

World Autism Day was observed on 2 April, as an occasion to raise awareness about children with autism. While an estimated 12 million children in India live with disabilities, we are grossly uninformed about the financial implications of raising a child with special needs. Parents of children with disabilities are often faced with the concerns of managing expenses for therapy, schooling and care, as well as ensuring financial security for their child's future. Here are a few key points to consider when planning finances for a child with special needs: Save more

Disabilities can hinder a person's ability to work or earn a living. It is therefore important for parents to ensure that the corpus they accumulate lasts for their child's lifetime. While ordinarily, parents would aim to save enough to care for a child for the first 20 years or so or their life, in the case of a disabled child, this support must be extended to 50-60 years or more.

Have a separate contingency fund to take care for six months of regular expenses for the child in uncertain circumstances. "While deriving the corpus amount for the contingency fund, you need to take into consideration the physical and medical condition of the child which may deteriorate over time

Appoint a guardian

Choose an individual you trust to become responsible for taking care of your Child Plans after you, and provide them with assistance even in adulthood, and designate them to be your child's legal guardian in the event of your passing. Seek legal assistance to draw up a will specifying how your assets will be distributed after your passing, and whether they should be handled by your child or their guardian.

Also See: How to plan financially for a special child

If the expenses for the disabled dependent are less than maximum tax deduction amount, an ad hoc deduction of Rs 75,000 is made." Further, unlike investments made in the name of minors, income from investments made in the name of a child

Source: http://childplan.tumblr.com/post/144693246858/financial-planning-for-a-special-child-should-be