Special Needs Trust
- What is a Special Needs Trust?
- When Might A Special Needs Trust Be Created?
- If having money will cause problems for my disabled child, can't I just leave that money to his brother and sister and ask that they look after their sibling?
- What government benefits can be coordinated with a Special Needs Trust?
- Does the existence of a Special Needs Trust qualify the beneficiary for public benefits?
- What is a "supplemental benefits" trust?
If having money will cause problems for my disabled child, can't I just leave that money to his brother and sister and ask that they look after their sibling?
LEAVING MONEY TO OTHERS CAN CREATE SERIOUS PROBLEMS...
"Disinheritance" was commonly used before the use of Special Needs Trusts was ratified and confirmed by Congress.
Using disinheritance as a means of providing for a disabled or ill person as a way of preserving eligibility for governmental benefits puts the assets at risk. For example, a non-disabled sibling holding assets for the benefit of a disabled sibling could be subject to such liabilities such as judgments from automobile accidents, bankruptcies, divorce, etc.
In such circumstances, those assets that parents wish to specifically benefit a disabled or chronically ill child could go to pay the judgment creditors or the estranged spouse of the non-disabled sibling. Using a Special Needs Trust guarantees that the funds will be held only for the benefit of the person under the disability or chronic illness, and not for any other purpose whatsoever.