A special needs trust, also called a discretionary trust, is used by parents and other family members to leave a legacy to a person with special needs. A discretionary trust is usually funded (money put into the trust) after the death of the parent or other family member who created the trust.
The assets held in the discretionary trust do not affect an SSI recipient's benefits because the beneficiary can never become the owner or take control of the assets in the trust. The trustee of the trust has the absolute discretion to use the funds to pay for the beneficiary's supplemental needs not covered by government benefits.
Upon the death of the beneficiary with special needs, any funds remaining in the discretionary trust can pass to the other named beneficiaries.
We are always pleased to answer your questions and to assist you regarding special needs planning. Please call us (313) 584 1460 if you have any questions or to make an appointment.
The information presented is not legal advice nor a foundation for an attorney/client relationship.