1. GUARDIANSHIPS

Guardianships give complete control of their finances to someone else. There are many advantages, and for some, this is the best option, not only to protect your child financially, but also to look out for their best interests, both physically and emotionally.

If your child is to live the life they want (and you want them to have), they must have financial security. Ideally, they should have as much financial autonomy as possible, because this encourages greater independence. But if you are leaving them money through inheritance, you have a right to expect it will be used wisely. Our children are disproportionately poorer compared to other groups in society; so, ensuring a sound financial future is imperative. Regardless of the exact solution or combination of financial

options you elect to use, we need to organize their financial affairs to give them as much security as possible, for when we are not around to support them.

Vision on the Financial line requires us to answer a key question: does my child need a guardianship to protect them? Often this is a matter of personal choice, but we should always allow them as much autonomy as possible. Not being financially literate is not, I believe, a reason to stop them from having control over their finances – many people aren't that financially literate, and yet they manage to get by. However, that's not to say you shouldn't use the tools available to protect major assets or inheritances they might receive.

2. TRUSTS

Next to guardianships on the Financial line and close in terms of control, are Trusts. You may use something like a special needs trust to hold assets, which means finding a balance between the finances your child controls and those controlled by the trustees.

Assets put in a trust do not belong to your child. This has important implications when applying for government support, as the asset is not considered theirs and it cannot be regarded as money they have available. This is important if applying for means-tested benefits or other forms of financially assessed support, where having too much money available can prevent a successful application for government support. This is often the main reason why parents set up trusts for their children.

There are also other benefits to a trust. It can offer a degree of protection for your child, as well as financial security. For example, if you leave the house in which they live to a trust, they will always

have a place to live, but that house is not considered 'theirs'. This means that even if they are not good at managing their own money, they cannot get into debt to the point where their home is taken into foreclosure. They can't be defrauded out of it. If they became romantically involved and the relationship ends, a partner could not claim half the asset, because your child does not own it.

Setting up a trust is not as difficult as people imagine. Trusts for the most part follow the same basic pattern. There is a 'settlor' (the person who starts the trust), a 'beneficiary' (the person who gets money and assets from the trust), and a number of 'trustees' (people who run and administer the trust, and the legal owners of the assets held in the trust). Most trusts have at least two people as trustees, most likely starting with you. They can be set up by a lawyer or financial adviser, who will talk you through the process in more detail.

From my experience, setting up a trust is a great deal easier to do than deciding who future trustees might be. You could use professional people as future trustees, but this will come at a cost. Lawyers and accountants charge for their time, and over the years these costs can mount up. However, this option will ensure that the trust is likely to be well-managed and meet its legal and regulatory obligations.

If you choose nonprofessionals, there are certain things you should consider:

• Are the possible trustees young enough to be around for your child well into the future?
• Are they good money managers themselves?
• Are they willing and capable of handling the responsibility?
• Are they good administrators? Being good with money is not the same as doing the necessary paperwork each year after the trust becomes active.

I would advise against any automatic assumption in favour of choosing family members as trustees. They may not be impartial, and may not always follow your instructions as closely as paid professionals or slightly more distanced non-professionals might. Whoever is in control of their finances needs to know your intentions, so they can facilitate the financing of it.