SPECIAL NEEDS PLANNING

Disabled or elderly beneficiaries accepting public benefits from the State or Federal government can lose their qualification for these benefits if the receipt of an inheritance or other gift raises the value of their estate above the level for qualification. In order to make sure that the receipt of a gift will not disqualify a disabled beneficiary from receiving public benefits, the law allows for the creation of “special needs trusts.” These trusts allow a Trustee to hold assets for the benefit of the disabled beneficiary and to distribute income and principal for items and in the amounts that will allow the beneficiary to live more comfortably but still not lose their eligibility.

Special needs trusts can be created and funded prior to the death of the Settlor, or can be incorporated into a revocable living trust to be funded at the Settlor’s death.