Saturday 5 May 2012

Special Needs Savings Scheme (SNSS); Trust and Savings Options for Persons with Disabilities

Children get monthly payout from CPF after parents' death
By Janice Tai, The Straits Times, 4 May 2012

A SCHEME launched recently under the Central Provident Fund (CPF) to make monthly payouts to special-needs children after their parents' death has attracted 98 sign-ups.

Two-thirds of the applicants are parents in their 40s and 50s, who have arranged for payouts of $250 to $500 to go to their special-needs children.

The Special Needs Savings Scheme (SNSS), launched three months ago to provide a measure of financial security to such children, disburses the funds from the parents' CPF savings into the nominee CPF account of the child.

Usually, the savings of a CPF member who dies are distributed to his nominees as a lump sum.

The SNSS was developed in response to the concerns of parents worried about the long-term financial security of their special-needs children, but who had little in savings outside of CPF.

The other option for parents - that of setting up a trust fund with the Special Needs Trust Company (SNTC) - is not viable for those unable to fork out the minimum sum of $5,000 required.

The funds in the SNSS earn the same interest rate as the parents' accounts, and parents are free to set the quantum of the monthly payout, which must be at least $250.

Housewife Elly Khoe, 59, said signing up for the SNSS for her 18-year-old son, who has Down syndrome, has given her peace of mind.

She believes it is better for him to get a fixed amount every month to live by, rather than a lump sum, which he may squander away.

She said of her only child: 'He is quite independent and can take the MRT by himself. But give him $5 to buy food and he won't know how much change to expect, so the small payouts are extra security.'



Administrative assistant Haryati Jamil, 41, said she opted to be on the SNSS because her family cannot afford to set up a trust fund for her 16-year-old son, who has autism. 'For low- to middle-income families like us, meeting the day-to-day expenses is already a headache. So opting for this is better than nothing in having some financial protection.'

Another parent who wanted to be known only as Mr Ho, a 47-year-old senior staff nurse, has savings and insurance policies, but sees the SNSS as an additional safety net. He signed up his autistic son, aged 10, last month, and plans to do the same for his other son, who is 13 and has intellectual disabilities. He said he learnt about the SNSS through the younger boy's school, St Andrew's Autism Centre.

Ms Woo Pei Foon, a senior social worker from the school, said parents had shown keen interest in the SNSS, but had asked whether the minimum payout of $250 is enough.

Those who prefer more flexibility in the payouts and more guidance from social workers on developing a customised financial care plan for their children can turn to the four-year-old SNTC, which has built a base of 145 trust accounts.

Its general manager Esther Tan said the SNSS complements a trust fund, as both meet different objectives: 'Parents without the means to set up a private trust fund but who wish to have the proceeds of their HDB flats or insurance policies injected into the fund can come to us,' she said. She added that the SNTC has encouraged parents to sign up for the SNSS, which offers relatively higher interest rates.

Funds disbursed from the nominee CPF account earn interest of up to 4 per cent a year, with an extra 1 per cent on the first $60,000; the SNTC, which entrusts the funds with the Public Trustee's Office, has made an average interest payout of about 3 per cent over the last four years.

MP Denise Phua, who supervises two special schools and a day activity centre for those with autism, expects the take-up rate for the SNSS to pick up, but that it could go even higher if the scheme also includes special-needs people not enrolled in special schools. She also called for a long-term care plan for these individuals.









* Govt subsidy for trusts for special needs kids
It will pay most of the fees for setting up SNTC accounts
By Janice Tai, The Straits Times, 14 Jun 2013

WHEN she was diagnosed with end-stage renal failure seven years ago, her immediate concern was: Who is going to take care of my son?

Madam Saw, who wants to be known only by her surname, had considered the option of setting up a trust account with the Special Needs Trust Company (SNTC) for her autistic son.

With such an account, her son, now 13 years old, would receive a payout every month after she dies.

But she found the costs of setting up such an account too high. "Meeting day-to-day expenses is already a headache. I go for dialysis almost every day and my husband has quit his job to look after our son," said the 49-year-old.

When she learnt that she could get government subsidies to offset the costs involved, she immediately signed up for it.

To encourage more parents of special needs children to start financial planning for them early, the Ministry of Social and Family Development has begun subsidising at least 90 per cent of the fees needed for setting up an SNTC trust account from March this year.

The ministry absorbs the annual operating costs of SNTC so that its fees can be kept at an affordable rate. All can qualify for the subsidies.

SNTC activates the trust account and disburses money to the child after the parent dies, as specified by the latter.

Parents have to deposit a minimum sum of $5,000 into the trust as a start. Its funds are kept with the Public Trustee's Office, which puts the funds in low-risk financial instruments. Over the past five years, it paid an average of about 2.8 per cent interest.

Previously, parents had to pay a one-off $1,500 set-up fee and annual fees of $250 or $400, depending on whether the trust has been activated. With the subsidies, parents pay only a one-off set-up fee of $150 and annual fees of $40 if the trust has been activated. No annual fees are charged if it has not been activated.

The take-up rate, however, has been low, even though it is the only non-profit trust company in Singapore set up to provide services to those with special needs.

Since it started five years ago, only some 150 accounts have been set up.

SNTC general manager Esther Tan said younger parents usually prefer to use the money to help their children in other ways, such as by enrolling them in early intervention programmes. Older parents, meanwhile, may need the money to pay for medical expenses.

But since the subsidies kicked in, 40 more accounts have been set up.

SNTC also has a team of social workers who do home visits and draw up care plans for their clients' children. It periodically reviews the amount given to the child each month to suit the child's needs.

The SNTC complements another available scheme - Special Needs Savings Scheme - which was launched last year. It disburses the funds from the parents' CPF savings to the child or his appointed guardian. This scheme works for parents who have little in savings outside of CPF. So far, 216 people have signed up.

Madam Saw said a load has been taken off her mind now that she has set up a trust account for her son. "The future seems less uncertain now."





* Few set up trust fund to care for kin with disabilities
Non-profit body seeks to get elderly parents, caregivers to make plans before they pass on
By Kok Xing Hui, The Straits Times, 29 Mar 2017

Although many parents of those with disabilities worry about what will happen to their children after they die, few have taken action by opening trust accounts to look after them.

When Mr Ong Yeow Ping, 38, who has intellectual disability, lost his mother in 2004, for example, he inherited her four-room flat, savings and insurance payouts.

But the money ran out in 2014, after being used to pay for his fees at Metta Home for the Disabled and the expenses of his elderly father, who died in 2012.

Mr Ong needed to sell the flat to fund his stay at the home, but his late father's relatives had moved in and they refused to leave. He also lacked the mental capacity to authorise its sale.

His cousin Tan Ngan Seng, 55, a retired civil servant, then opened an account for Mr Ong with the Special Needs Trust Company (SNTC) and applied to be Mr Ong's deputy - which allowed him to sell the flat.

Under the Mental Capacity Act of 2008, a deputy can make decisions for those with mental disability, and the SNTC account allowed Mr Tan to create a trust fund for Mr Ong.

When the four-room flat was finally sold last December, his father's relatives relented and moved out. The $313,236 from the sale was credited into Mr Ong's trust - an amount that can fund him for the rest of his life, according to a care plan drawn up by social workers and Mr Tan.

SNTC, a non-profit fund, was started in 2009 to allow family members to park monies and assets away to support their loved ones with special needs. The accounts can also be opened by children whose parents have acquired disabilities in old age or through accidents.

As of this month, 447 SNTC accounts have been opened. Two years ago, there were 300 accounts.

There is no official central registry of people with disabilities, but the Ministry of Social and Family Development estimates that 3 per cent of the resident population of 3.9 million have disabilities. That works out to 117,000 people thought to have disabilities.

Earlier this month, in the Committee of Supply debate, Social and Family Development Minister Tan Chuan-Jin said SNTC will step up on outreach efforts to address caregivers' "major concern" about how their children with disabilities will be cared for after they die.

When an account is set up, social workers and caregivers look at how much a trustee needs for food, transport and medical services, among other things, and determine how the money will be spent when the trust is activated.

Mr Tan Ngan Seng took the advice of a lawyer to set up an SNTC account for Mr Ong so that the court would know how he intended to use the proceeds from the sale of the flat. "He has the mental capabilities of a three-year-old," said Mr Tan, who is also Mr Ong's caregiver.

Mr Ong's account is one of 19 that have started paying out money to the dependants.

Each month, the payment of his fees for Metta Home comes from SNTC. And if Mr Tan needs to draw additional funds, say, if his cousin fell ill, the withdrawal has to be approved by SNTC to ensure that there is no misuse of funds.

SNTC general manager Esther Tan said: "This means the deputy will not need to account to the relatives on how the monies are used, because SNTC takes over the disbursement of monies from the trust."

said: "It is also good for me. I'm relieved that there is long- term financial security for Yeow Ping for the rest of his life."

A trust fund requires just $5,000 to be started, and caregivers are encouraged to pledge the proceeds from the future sale of their homes to it. They can also make a minimum top-up of $500 at any time and the Government subsidises the set-up and activation fees.

Ms Tan said: "Our priority is to reach out to elderly parents or caregivers so that they can make plans, including setting up an SNTC trust, make their will and appoint deputies for their special needs dependants before they pass on."

She said targeting elderly caregivers was especially crucial so that cases like Mr Ong's can be avoided.

To do so, SNTC will partner grassroots leaders to reach out to Pioneer Generation Singaporeans with special needs dependants. It will also collaborate with hospitals, senior activity centres and family service centres, said Ms Tan.

An SNTC account is a crucial safeguard, she said. "Even if you can find somebody you trust to take care of your child when you die, what if the child outlives his caregiver?"

And if the person with disability dies, a residual beneficiary named by the parents - for example, an able-bodied brother - will inherit the unused portion.


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