Saving for a disabled child

DonnaInSussex

My daughter has a severe disability which means she will need to be cared for all of her life, and is unlikely to be able to make financial decisions as an adult.

She's just turned three, and I want to put some money aside for her monthly in case she needs it when older, for equipment or support and so on.

I was considering a Junior ISA, but see that only the child can access the money, upon reaching 18. As this is unlikely to be possible with her, does that rule out ISAs for us?

Are there financial investment products specifically for disabled people?

ceredigion

My sister was very disabled and I mean very. For her entire life 30 years my parents made sure she had absolutely nothing to the point she was even pacifically excluded from their will, that even included our grand parents estates, all for a very good reason.

sleepless_saver

Have you thought of getting a trust set up for her? She would not have direct access to the money but its purpose would be to help provide for her including after you are no longer around.

https://www.moneyadviceservice.org.uk/en/articles/setting-up-a-trust
https://www.gov.uk/trusts-taxes/trusts-for-vulnerable-people

xylophone

https://www.scope.org.uk/support/families/will-trusts

Discusses wills but the principles round provision/benefits are similar.

https://www.gov.uk/trusts-taxes/trusts-for-vulnerable-people

amiehall

Surely you will need some sort of power of attorney anyways once your daughter reaches adulthood if her disability is as severe as it sounds. If that is arranged then having savings in your daughters name would neither be here nor there as you would have the legal right to manage them in her best interests.

xylophone

I was considering a Junior ISA, but see that only the child can access the money, upon reaching 18. As this is unlikely to be possible with her, does that rule out ISAs for us?

It would not rule out a JISA - if, at 16/18, a person was incapable by reason of disability of managing his financial affairs, an appointee of some description would do it for him.

However, the JISA at age 18 would become an ISA and would count as capital, and interest etc as income, for purposes of means tested benefits? - See links in my post above.

A discretionary trust for a vulnerable person might be the solution?

DonnaInSussex

Yikes, the government like to make it complicated, don't they?

Looks like the best course of action is a trip to the solicitors. Thanks guys.

Bob_Bridges

DonnaInSussex,
First of all, I wish you and yours well.

Savings are something you may have to research yourself, that's all about your attitude to risk versus reward.

I think more important is the control of funds in years to come.
You may need to set up a trust to oversee spending of the funds. Whatever your daughter's condition there may be support group specifically for her condition - they usually have people who are a little further along the journey than yourselves. A good bit of knowledge to be had there.

Sadly I know from my own experience that you have to confront some difficult questions. Find support wherever you can.

I would recommend , if you haven't done so, make a will. Discuss this with partner, family first.

Have you applied for DLA, carers allowance, motability ?
Track down all the financial support too,

Its a bit late and its been a long day, but I hope this helps somehow.
All the best, Bob