Special Needs Trusts—Wills, Estates, & Trusts Prof Blog

One in 26 American Families Reports Raising a Child with a Disability

The Wills, Trusts, & Estates prof blog notes new detail available on this sort of trust:

Ruthann P. Lacey (Attorney, Georgia and Washington D.C.) and Heather D. Nadler (Attorney, Georgia) recently published an article entitled, Special Needs Trusts, 46 Fam. L.Q. 247-267, (2012). Provided below is the description from the American Bar Association’s webpage:

One in twenty-six American families reports raising a child with a disability. Thus, special needs trusts are no longer a concept reserved just for special situations. Family law, elder law, special needs, and estate planning attorneys regularly encounter situations in which good planning centered around an individual with a disability is essential. Special needs trusts are a legal planning tool that enables children and adults with disabilities to more easily become eligible for public benefits while also providing for at least partial reimbursement to the government for some of these benefits.

The authors explain the types of special needstrusts and how they can work with regard to public benefit eligibility rules of four of the principal federally-funded programs that provide benefits to the aged, blind or disabled. In addition, the article covers distribution standards, trustee selection and duties, reporting requirements, and attorney liability.

Read the whole piece here. 

Special Needs Trusts Aren’t Rare Today