Who Gets Special Needs Trust Balance on Death of the Beneficiary?
A special needs trust, of course, is for the primary benefit of the individual with a disability. But what happens on the death of the beneficiary? The trust might spell out its “remainder” beneficiaries — the ones who receive the balance on the death of the disabled beneficiary. But sometimes the trust just says that […]
Special Needs Trust Terminated When Beneficiary Moved
What happens to a special needs trust when the beneficiary moves to a new state? Will the trust continue, or transfer to the control of the new state? One special needs trust beneficiary in Colorado discovered the Centennial State’s odd rule: a special needs trust is terminated when the beneficiary moves. Parker Wilson’s story Young […]
Should You Establish a Special Trust for Your Child?
Let’s talk about a special trust for your child. Not necessarily a “special needs” trust, but a trust for a beneficiary who can not manage their own finances. What’s in a name? Search for information about special needs trusts, and you’ll find plenty of entries. But you’ll also find plenty of confusion. What’s the difference […]
Explaining Third-Party Special Needs Trusts
What is the difference between a third-party special needs trust and a self-settled trust? The distinction can be way more confusing than it ought to be. The trusts are similar in a number of ways, but there are important differences. A few months ago, we explained self-settled special needs trusts in this space. Those are […]
Explaining Self-Settled Special Needs Trusts
New clients frequently come to us after they have been told that they need to “get” or “set up” a special needs trust. They often don’t realize that there are different kinds of special needs trusts. Sometimes a self-settled special needs trust is the right answer. In some cases the right approach is a third-party […]
A Spendthrift Trust Might Be Reachable by Creditors
The whole point of a spendthrift trust is to protect the trust’s assets from the beneficiary’s creditors. The name hints at the purpose: the point is to protect someone who can’t control spending. Even if the necessary protection is from himself or herself. Generally, a spendthrift trust can work very well for its intended purpose. […]
Section 8 Housing Participant Permitted to Receive Special Needs Trust Benefits
JUNE 27, 2016 VOLUME 23 NUMBER 24 When an individual is receiving Supplemental Security Income (SSI) benefits, or Medicaid (AHCCCS, in Arizona) benefits, he or she may have benefits reduced or eliminated if he or she receives a lump-sum settlement of a personal injury lawsuit or periodic payments from such a lawsuit. That is the […]
Debit Card for Special Needs Trust Creates Eligibility Problem
AUGUST 3, 2015 VOLUME 22 NUMBER 28 As part of Pennsylvanian Sharon Edwards’ (not her real name) divorce settlement, she and her husband agreed to establishment of a special needs trust to hold some of the marital property she would receive. With the trust in place, Sharon would continue to qualify for Supplemental Security Income […]
The “Spendthrift” Trust Explained
JULY 27, 2015 VOLUME 22 NUMBER 27 Lawyers love to name and categorize everything they deal with. It’s a useful way to group similar concepts, but it can lead to confusion and misunderstanding. That’s particularly true when a legal concept is non-exclusive — in other words, when one instrument can go by a number of […]
Managing a Special Needs Trust — The Handbook
APRIL 13, 2015 VOLUME 22 NUMBER 14 Are you named as trustee of a special needs trust? Are you a trust beneficiary, wondering about how the trust should be administered? Or are you a parent or grandparent of an individual with a disability, wondering about what a special needs trust might actually look like in […]
