Special Needs Trusts
Special Needs Trusts A Special Needs Trust serves the same purpose as a Supplemental Needs Trust but there are some important differences. A Special Needs Trust is necessary when the individual who has a disability has money or other assets in their own name. For example, if a parent or grandparent dies and leaves $30,000 to a grandchild who has a disability, that money has to go into a Special Needs Trust rather than a Supplemental Needs Trust to maintain eligibility for Medical Assistance or Social Security.
One disadvantage of a Special Needs Trust is that the government has a claim on the assets of the trust. This means that any money left in the trust upon the death of the beneficiary usually goes to the government rather than other family members. Another disadvantage is that a Special Needs Trust may need court approval if not established by a parent or grandparent before they die. This results in increased expenses. As always, planning ahead is less expensive!
Amy Dawson is the parent of twins, one of whom has autism and special health care needs. She began practicing law in 1992 at the firm of Faegre & Benson, L.L.P. in Minneapolis. She also worked at the PACER Center and is a member of the Board of the Arc Greater Twin Cities. Amy’s law practice focuses on issues related to autism, disabilities, insurance and estate planning.
Bob Gunderson inspired me to devote my practice to individuals who have disabilities, their families, and the organizations that serve them. Bob Gunderson was my mentor, friend and colleague and I miss him very much. Bob Gunderson served the disability community as an attorney, as a brother, and as a dedicated volunteer who spent many hours in service to organizations such as Opportunity Partners, Fraser, PACER, and the Arc of Minnesota and Arc Greater Twin Cities.