Think Tank

Estate Planning

How to protect your child with special needs

Questions in the minds of Parents…

  • How do we ensure that siblings/other family members will not be biased against the child and he/she will get his/her due share after we are not there?
  • How do we ensure that our legacy will be used for benefit and for the needs of our child only?
  • Whom should we trust for managing and administering our estate for the benefit of our child?
  • What will happen to our child (later an adult, yet not financially independent), when we are not around?
  • How can we secure the financial future of our child?

Most of these families are still looking for a suitable solution for all such questions and possibly are unaware about the concept of ‘Private Family Trusts’.

Through the Estate Planning Services offered by Kotak Mahindra Trusteeship Services Limited, we can assist such families through‘Customized Trust Structures’.
Trusts can help the family achieve the following -

  • Meeting Needs and Requirements of the child - Trusts can be structured to make distributions to meet the support, health and other requirements of the child and to ensure that the child will truly benefit from the estate.
  • Financial Independence - No dependence on relatives/ friends and complete financial independence for the child.
  • Ring- fencing of Assets - If appropriately structured, Trust assets can be ring-fenced and preserved against unforeseen events in the business and other liabilities.
  • No Administrative Responsibilities - The Trustee will handle all the administrative work including making regular distributions to beneficiaries, book-keeping, tax requirements in certain cases, ensuring efficient management of financial investments, etc.
  • Ease in Succession - No Probate process, hassle-free transfer of ownership for assets held in Trust.
  • Independent Trustee - Kotak Mahindra Trusteeship Services Limited acting as a Corporate Trustee benefits from being an outsider and will be able to make impartial and objective decisions free from bias.
  • Guidance from Family - Family Member/ confidante can act as an administrator to advice the Corporate Trustee on decision making relating to the Trust.

 In case you need any further information on the subject, please contact the Estate Planning Desk.

Disclaimer: The views expressed in the articles are personal of the authors and do not reflect the views of Kotak Mahindra Bank Ltd.

Comments

1
on Thursday,1 January 1970
1
on Thursday,1 January 1970

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