Financial Care for Special Needs Children

Source: The New Paper posted in­rently, there are two fin­an­cial secur­ity schemes for par­ents with spe­cial needs chil­dren when they are no longer around to care for them.

The first one is the Spe­cial Needs Trust Com­pany (SNTC) Trust­ee Scheme which provides trust ser­vices to bene­fi­ciar­ies who have spe­cial needs. How­ever, this requires cash sav­ings with SNTC with a min­im­um depos­it of $5000 and nom­in­al annu­al fee. For those without much cash out­side their CPF, the new Spe­cial Needs Sav­ings Scheme (SNSS) man­aged by CPFB will be a great help.

Photo source: The New Paper, 30 Apr 2010, pos­ted in

SNTC Trust­ee Scheme

Per­sons with spe­cial needs are defined as those whose pro­spects of secur­ing, retain­ing places and advan­cing in edu­ca­tion, train­ing insti­tu­tions, employ­ment and recre­ation as equal mem­bers of the com­munity are sub­stan­tially reduced as a res­ult of phys­ic­al, sens­ory, intel­lec­tu­al and/or devel­op­ment­al impair­ments.

Under SNTC Trust­ee Scheme, the Settlor (par­ent who sets up the trust for his spe­cial needs child) meets SNTC’s case man­ager to devel­op a care plan, and this will be reflec­ted in the Let­ter of Intent, to con­sider the fin­an­cial and care needs of the inten­ded Bene­fi­ciary under the SNTC Trust­ee­ship Scheme. These include vari­ous aspects of the well-being of the Bene­fi­ciary such as accom­mod­a­tion, daily liv­ing needs (food, cloth­ing, trans­port etc), edu­ca­tion­al needs, employ­ment and train­ing needs, med­ic­al and dent­al needs, pro­fes­sion­al sup­port needs and oth­er areas of con­cern.

The Let­ter of Intent is attached to the Trust Deed so that SNTC will admin­is­ter the trust funds accord­ing to the wishes of the Settlor, upon activ­a­tion of the trust. The Settlor will need to appoint a guard­i­an or deputy (usu­ally a sib­ling, close friend or rel­at­ive of the Bene­fi­ciary) to review the Let­ter of Intent with SNTC’s case man­ager upon activ­a­tion of the trust. Once the trust is set-up , it is irre­voc­able but you may review the Let­ter of Intent with the SNTC case man­ager and this will up updated in the Trust Deed.

CPFB Special Needs Savings Scheme (SNSS)

SNSS encour­ages par­ents of chil­dren with spe­cial needs to save up for their long-term care needs. Under this scheme, par­ents can nom­in­ate their chil­dren to receive monthly dis­burse­ments from the par­ent’s CPF sav­ings after the par­ents’ demise. There are no admin­is­tra­tion fees and there is no min­im­um bal­ance to sign up. To be eli­gible for the scheme, the nom­in­at­ing par­ent and the per­son with dis­ab­il­it­ies have to be Singaporeans/Singapore Per­man­ent Res­id­ents at the time of applic­a­tion. The per­son with dis­ab­il­it­ies has to:
(i) Require assist­ance in at least 1 Activ­ity of Daily Liv­ing (ADL)*; OR
(ii) Have atten­ded or is attend­ing a Spe­cial Edu­ca­tion (SPED) school.

*The six ADLs are – wash­ing, dress­ing, feed­ing, toi­let­ing, mobil­ity, and trans­fer­ring.
Par­ents can decide the amount of monthly dis­burse­ment, with a min­im­um amount $250 for each recip­i­ent. How­ever, if the sav­ings at death are not enough to provide the pay­out for 12 months, the entire CPF bal­ance will be paid as a lump sum.
The money in these spe­cial CPF accounts for dis­burse­ment will earn the same interest rate as the nor­mal CPF accounts. SNSS will be imple­men­ted early 2012. Par­ents may approach The Centre for Enabled Liv­ing for more inform­a­tion.

Sources :
1) Spe­cial Needs Trust Co.
2) Cen­ter for Enabled Learn­ing


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