Kennedy

By Carrie A.S. Kennedy, Esquire

When your loved one, for example a child or grandchild, has special needs and receives government funding, it is especially important to create an estate plan that doesn’t jeopardize that person’s receipt of governmental benefits (such as Supplemental Social Security Income and Medicaid). Your Will should be carefully drafted to prevent that person from inheriting assets directly.  Additionally, a carefully drafted Third Party Special Needs Trust can allow for the use of funds as provided in the trust for the benefit of your loved one while preserving much needed governmental benefits.  This type of trust gives the grantor (creator of the trust) the ability to direct the ultimate beneficiaries of any funds remaining upon the passing to the special needs person.  The trust can be funded through inheritance as directed in a Will, by beneficiary designation on an account or policy or by direct gift to the Trust from a third party.  It may not be funded with the special needs person’s own funds.