The Special Needs Alliance, a special needs advocacy group, has released a new article advising parents on how to fund a third-party special needs trust for their disabled children.
A special needs trust is a type of trust that holds funds to help a person with disabilities while still allowing for the disabled person to qualify for government benefits like Medicaid and Supplemental Security Income (SSI). A third-party special needs trust is a special needs trust that is funded by someone other than the disabled person themselves.
In summary, for most parents, the most prudent course of action is to fund and establish the trust after the death of the last surviving spouse. This is typically done as a bequest in the parent’s will or trust. Circumstances where this may not be the best course of action include when other relatives wish to contribute, or if the parents have significant estate and gift tax considerations. What is best for any particular situation is something that should be discussed with a local special needs attorney.
Other factors to discuss with a special needs attorney include what level of funding is needed for the special needs trust, how to select a trustee, and how funding the special needs trust fits in with the parents’ broader estate plan.
For more a detailed discussion, read the full article at the following link: When And How Do I Fund My Special Needs Trust for My Child with Disabilities?
For assistance with special needs trust planning, estate planning, wills and trusts, and related areas, please call Mitchell, Brown and Associates at (314) 962-0186.
