Special Needs Trusts for Persons With Disabilities to Protect Government Benefits and the Individual

Special needs trusts are an integral part of the practice of elder law. To handle these trusts properly for clients, counsel must know when special needs trusts are appropriate, how to draft first- and third-party special needs trusts to protect public benefits for clients, and how to administer the trusts.

Since becoming law, the Special Needs Trust Fairness Act permits mentally competent individuals with disabilities to establish special needs trusts for their benefit. In the past, only parents, grandparents, legal guardians, or a court could set up trusts on behalf of a disabled person.

Counsel must also understand tax consequences and the impact on a client's public benefits when establishing a special needs trust. Practitioners must be aware of pitfalls to avoid when amending special needs trusts and consider how guardianship and special needs trusts do and don't mesh.

Listen as our panel of elder law practitioners discusses critical points for elder law counsel to understand and weigh when drafting first- and third-party special needs trusts. The presenters will also outline the potential hazards for counsel when amending special needs trusts.

I. SNT overview

II. Public benefits considerations

III. ABLE Act

IV. Drafting considerations

V. Pitfalls

The panel will review these and other key issues:

• How can counsel best protect public benefits when drafting special needs trusts?
• What are the tax issues to consider in the drafting process?
• What pitfalls may arise when amending special needs trusts?