Financial tools for hd families from the HSC
Posted by Barb
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Financial tools for hd families from the HSC October 06, 2010 05:09AM |
I got this e-bulletin today from the HSC, and i thought it might be useful to some of you. It talks about discretionary trusts, and registered disability savings plan. The registered savings plan is strictly canadian, so i left that part out, but i copied the info about the trust saving plans, here you go: 
Trusts and Saving Plans: Financial Tools for Families
A diagnosis of Huntington disease creates all kinds of worries for families, including financial ones. What will happen when the person with HD can no longer earn a living? How will families afford the cost of home care, medications, mobility aids and, eventually, long-term care?
Two financial tools are worth considering: discretionary trusts and the new Registered Disability Savings Plan.
Discretionary Trusts
A trust is a legal arrangement between the settlor (the person who establishes the trust), the trustee (the person who administers it) and the beneficiaries (a spouse with HD, for example, or children at risk).
The money can be put into a trust either while the settlor is alive or upon their death. In either case, the beneficiaries have no control over the money; the trustee is the one who decides how it is spent.
For many families dealing with HD, discretionary trusts offer several benefits. One is that when the person with HD can no longer look after financial matters, it ensures the money is well managed for their benefit.
Since the person with HD doesn?t actually own the assets in the trust, they?re not forced to spend it all before they qualify for government help. If there are children at risk, a trust can therefore ensure that there is money left to support them as well.
Finally, if the person with HD receives disability benefits, a trust can be structured so that it doesn?t affect those benefits, unlike a gift or inheritance.
If this sounds like a good option for your family, be sure to contact someone with appropriate expertise ? a lawyer or a trust company professional ? to help you set it up. Trusts are complex legal agreements, so it?s worth spending a little money to make sure yours is structured properly and does what you want it to do.
One of the key questions to consider is who to appoint as a trustee. Many people opt for two trustees: a professional to manage the money, keep the records and submit the annual tax return, and a close friend or family member who will ensure the money is used to maximize the quality of life of the beneficiaries.
The earlier you begin planning, the better, so that the person with HD can participate as fully as possible in the decisions.
Edited 1 time(s). Last edit at 10/06/2010 05:10AM by Barb.
Trusts and Saving Plans: Financial Tools for Families
A diagnosis of Huntington disease creates all kinds of worries for families, including financial ones. What will happen when the person with HD can no longer earn a living? How will families afford the cost of home care, medications, mobility aids and, eventually, long-term care?
Two financial tools are worth considering: discretionary trusts and the new Registered Disability Savings Plan.
Discretionary Trusts
A trust is a legal arrangement between the settlor (the person who establishes the trust), the trustee (the person who administers it) and the beneficiaries (a spouse with HD, for example, or children at risk).
The money can be put into a trust either while the settlor is alive or upon their death. In either case, the beneficiaries have no control over the money; the trustee is the one who decides how it is spent.
For many families dealing with HD, discretionary trusts offer several benefits. One is that when the person with HD can no longer look after financial matters, it ensures the money is well managed for their benefit.
Since the person with HD doesn?t actually own the assets in the trust, they?re not forced to spend it all before they qualify for government help. If there are children at risk, a trust can therefore ensure that there is money left to support them as well.
Finally, if the person with HD receives disability benefits, a trust can be structured so that it doesn?t affect those benefits, unlike a gift or inheritance.
If this sounds like a good option for your family, be sure to contact someone with appropriate expertise ? a lawyer or a trust company professional ? to help you set it up. Trusts are complex legal agreements, so it?s worth spending a little money to make sure yours is structured properly and does what you want it to do.
One of the key questions to consider is who to appoint as a trustee. Many people opt for two trustees: a professional to manage the money, keep the records and submit the annual tax return, and a close friend or family member who will ensure the money is used to maximize the quality of life of the beneficiaries.
The earlier you begin planning, the better, so that the person with HD can participate as fully as possible in the decisions.
Edited 1 time(s). Last edit at 10/06/2010 05:10AM by Barb.
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