Torrance Fiscal Planning

With Torrance fiscal planning, families can plan for the current and future needs of their special needs children, ensuring that they have the money they need to live comfortably, safely and well for the rest of their lives. Parents must be sure to follow some simple tips to ensure that their money is protected, that supplemental income can still be received from the government and that wishes are followed even if the parents pass away.

The Steps to Becoming Fiscally Responsible

To start with, Torrance families will want to set up a trust. A trust is a vital savings plan that places money in the name of the trustee. This money is to be used for the special needs individual but is not placed in that person’s name to ensure that supplemental income is still received.

Next, parents will want to consider what type of life insurance they purchase. While many choose term life insurance because it is so affordable, it is typically best to fund a trust with a whole life plan or another type of permanent life insurance. This protects the child’s financial interests should the parents die.

Of course, parents should also consider saving for school. Most families decide to fund extended schooling through the trust rather than by saving up in a 529 plan. While 529 plans are great ways to save without being taxed, the money in them can be severely diminished or lost if the child is unable to go on to college. Additionally, these plans can stop government aid after the child turns 18.

Finally, Torrance parents must communicate their wishes with extended family members and close friends to ensure that their guidelines are followed even if they are no longer around to protect their child’s interests. Family members should also be aware of the trust so that they do not leave money in their wills in the child’s name, thus cutting off the possibility of supplemental government income.

Torrance fiscal planning must cover a wide variety of concerns, but it is an excellent way to provide for a special needs child while also reducing stress in parents’ lives. Setting up financial plans can seem difficult and time-consuming without the right help. We recommend that you speak with a special needs attorney from Newman, Aaronson, Vanaman to get advice that works for your life and to ensure that paperwork and forms are filled out correctly.

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