Special Assistance Network
Education. Empowerment. Endowment.

How Should A Special Needs Trust

Be Worded


Just some points to keep in mind:

Although there is no special language, per se, there is specific information that should be addressed in the legal language of the Special Needs Trust.
Most importantly, a Special Needs Trust must state that the trust is intended to provide “supplemental and extra care,” beyond that which the government provides.
•  State that this trust is not a basic support trust.
•  Do not include a “Crummey Clause,” an estate tax provision (we can explain what that is).
•  Reference the Social Security Operations Manual and the specific parts in the manual that authorize the creation of the Special Needs Trust.
•  Include the required language regarding distribution of assets at time of death of the beneficiary:
1) Payback to Medicaid if the Special Needs Trust is a first-party trust;
- or -
2) Pay to other individuals or charities if the Special Needs Trust is a third-party trust.
•  Make reference to and explain the exception to the Omnibus Budget and Reconciliation Act.
•  Include a copy of the relevant provisions from the United States Code.
•  Establish the Special Needs Trust no later than the beneficiary’s 65th birthday.
Parents, grandparents, spouses, guardians or any other family member or individual can set up and/or contribute to a Special Needs Trust on behalf of a disabled or special needs individual.