Special Needs Trusts

Special Needs Parent / Grantor Controlled Trusts

The parent or grandparent creates the trust and then funds the trust with assets or provides that it will be funded upon their death. The special needs person is the beneficiary but they don’t have access to the assets of the trust. Those assets are distributed out in a manner that will bless and enrich the life of the special needs person but without jeopardizing their ability to qualify for certain government programs that are taking care of them.

Usually the parent (also known as the Grantor) oversees and controls the assets while they are alive. Upon their passing, the successor trustee steps in for the sole purpose of administering the special needs trust for the benefit of the special needs person. Sometimes there is no one competent enough to fill the shoes of the deceased Grantor. In that case we often rely upon a corporate fiduciary such as a trust company to come in and ensure that the funds are properly invested and that the needs of the special needs person are provided for.

Some of the disadvantages of a revocable trust are:

1. Revocable trusts are more expensive to set up than a simple will
2. Trusts must be properly funded, so assets must be redirected or retitled to the trust

Testimonials

Our Estate Planning Services