Knowing that someday you will not be around to care for your special needs child, you may consider creating a special needs trust. While a trust can do a lot to provide for your loved one, it is important to fund the trust enough for it to cover a variety of possible expenses.
Kiplinger explains some general considerations anyone can make when deciding how much to put into a special needs trust.
You should figure out the living arrangement for your child since your trust could consume a lot. Will the adult child reside with a family member, in a group home, in supportive housing or in a personal care home or nursing facility? For instance, a condominium with special needs services may require substantial funding for as long as your child lives. A personal care home could cost thousands of dollars per month and a nursing facility might be $12,000 to $13,000 per month.
Level of care
Care costs will vary depending on the impairment of your child. If your son or daughter enjoys a moderate level of independence, there is likely no need for constant care. Other disabilities, however, necessitate 24-hour supervision from caretakers.
There are tasks you carry out for your child, such as overseeing care and advocating for your loved one. You should factor these costs into your trust budget so your trust can pay for someone to carry out your responsibilities after your death.
Child life expectancy
You do not want your trust to run out of money for your special needs child. One way to avoid this is to figure out the possible life expectancy of your child. By factoring in elements such as the health of your loved one and the longevity history of your family, you might come up with an amount the trust should have following your death.
Do not panic if you are unsure what the future will bring. With some time and analysis, you might better understand how the special needs trust can help your child to the best extent possible.