Question: Is there an organization that evaluates pooled trusts and rates them like other charities? Answer: No, there is no organization that evaluates pooled trusts. However, a qualified special needs planner in your area will be able to point you in the right direction. For the Academy of Special Needs Planners’ list of pooled trusts, organized by…
Question: Can a special needs trust pay for the beneficiary’s doctor-prescribed special diet? Answer: The short answer is yes. However, it is still up to the trustee to decide whether to pay for it or not. Plus, if the beneficiary is on Supplemental Security Income (SSI), the payment for food may cause the SSI to be reduced…
Question: We have a brother with special needs — a documented intellectual disability — who works full time and does not receive benefits. Our father just died and we have money coming, but he did not include our brother in his estate plan. Are we legally able to set up a trust from our inheritance…
Question: If a special needs trust owns the house that the trust beneficiary lives in, who pays for the home expenses — the trust or the beneficiary? Answer: The trust should pay for all taxes and insurance, but the beneficiary should pay for utilities if he is able. If the trust pays for utilities, and…
Question: When an SSI beneficiary loses his government assistance, how do you cash out his special needs trust? Answer: If it is a first-party special needs trust (one set up to hold the beneficiary’s money), then there will be a payback to the state Medicaid agency before any money can go to beneficiary. If it is a third-party…
Question: I have an adult son who receives both Social Security Disability Insurance (SSDI) and Medicare. Is there an interstate agency that assists with moves from one state to another so my son will not lose eligibility for government benefits? Answer: We are unaware of an agency that would help in this way. However, the SSDI and…
Question: I have a patient who receives Supplemental Security Income (SSI) but can’t manage her own money. Can we set up a special needs trust to receive her benefits and use them for her benefit over the course of the month? Answer: It may be more prudent to have a Representative Payee appointed for her. The Social…
Question: Can a special needs trust have more than one trustee at a time? Answer: Yes, but be aware that a co-trustee can be held responsible for another co-trustee’s breach of a fiduciary duty. Thus, it is important that all co-trustees pay close attention to everything that is done in the administration of the trust….
Question: A divorced couple has separate special needs trusts (SNTs) for their two special needs adult children. The father has one trust for each beneficiary and the mother also has one trust for each beneficiary. The father does not want the mother to contribute to the trusts he has set up. Will this cause legal…
Question: Does a gift of $14,000 this year to a special needs trust (SNT) qualify for the annual gift tax exclusion? Answer: No. Such a contribution does not meet the requirements of the annual tax exemption. A trust would not meet this requirement unless it complied with the rules set forth in the IRS Crummey case (to…
