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Special Needs Trust

A problem which faces many families today is how to pass an estate when a beneficiary may have
special needs or disabilities which prevent that beneficiary from being able to manage such a gift for
themselves. Additionally, in many instances, beneficiaries who are currently benefitting from one or
more governmental resources would lose such benefits if they were suddenly to inherit from their
parents or grandparents.

In these instances we recommend the use of a Special Needs Trust for the beneficiary. This type of
trust withholds the distribution / gift from the beneficiary so no governmental source may claim that
the beneficiary actually has possession or ownership of the property and such can never be counted
against them as being a true asset.

This not only maintains the beneficiary's eligibility in their government benefits, but also protects the
beneficiary by using a trusted manager (trustee) who has the beneficiary's best interests in mind.

This planning is important on a multi-generational level. A scenario which has come up in the past is
where the Settlor of the trust has two children, one of whom has a special needs child (grandchild).
The Settlor simply leaves their estate to be divided equally between their two children, but
unfortunately one of their children pre-decease them - the child with the special needs grandchild.

Since the Settlor's trust was written prior to the birth of the special needs child, their grandchildren of
their deceased child inherited equally. The special needs child had all of his inheritance go to the
state for reimbursement and the child no longer qualified under the programs he presently enjoyed.

If you family has these special circumstances, please see us for a discussion as to how we can set
up the Special Needs Trust for the benefit of the beneficiary, allowing for their incidentals to be
protected while maintaining their eligibility for their governmental programs.