Special Needs Trust

[houstonssteaks]

Hello,
We set up a special needs trust for our son with Autism, however since we had already gifted him property earlier, it was determined by the court that his trust would be self funded and monies would eventually have to be paid back for medical. Can we set up a second special needs trust with a separate TIN that would be exclusively for gifts from relatives and would not be liable for a medical payback. I guess my question is can a person have more than one special needs trust with separate TIN's

Thanks so much
Alexander

 

[army judge]

Special needs trusts (medical trusts) are very special creatures. Not every disease (or medical vonfition) qualifies for a special needs trust.

For instance, we have a son who has such a trust. He's been in a coma for 10 years. From what I've learned about these kinds of trusts, a person has to be afflicted with a condition that causes them to be unable to care for themselves.

A person that is paralyzed is such an example. A person so afflicted is unable to provide for his/her own needs without the help of others. The medical condition has to be one that will not get better over time. It has to be a permanent condition.

I don't know of people with more than one medical needs trust. There would be no reason to have more than one.

When you say medical expenses have to be paid back, who do you mean? Special needs trusts are set up for that very reason. The monies are intended primarily for medical and personal care needs.

You might want to discuss this with your attorney. Special needs trusts are extremely complicated.

 

[knight75]

Hello,
We set up a special needs trust for our son with Autism, however since we had already gifted him property earlier, it was determined by the court that his trust would be self funded and monies would eventually have to be paid back for medical. Can we set up a second special needs trust with a separate TIN that would be exclusively for gifts from relatives and would not be liable for a medical payback. I guess my question is can a person have more than one special needs trust with separate TIN's

Thanks so much
Alexander

1. two types of irrevocable trusts. a) self-funded b) third party funded
2. a snt is an irrevocable trust.
3. snt for under 65 yr olds have a payback clause. anything left at death pays back the state for the medical services etc.
4. he could possible have 2 trusts. see #1. But get an attorney who really knows snt.
5. snt are usally discretionary so again see #4.
6. by definition 'special needs' does not mean incapacitated or unable to care for one's self. It means that they will have 'special needs' above what a normal individual would have.
they are by design intented to be used when govt benefits are accessed: ssi,ssdi, medicare, medicaid. The idea is that the trust can not provide basic needs that the govt program provides. the snt provides assistance ABOVE what the programs provide.