Legal Question in Wills and Trusts in Illinois

How does a special needs trust work?

Can you briefly explain how a special needs trust works? (I want to set one up for my brother.) Do I have to transfer any of my assets for the trust to be valid? Or do I need to do anything specific in order for it to become effective?

I also have a simple will that leaves everything to my brother. How would the trust affect my will (if at all). Thank you.


Asked on 8/15/08, 8:39 pm

1 Answer from Attorneys
Cyndi Perez Trostin

Re: How does a special needs trust work?

A special needs trust is a trust containing language that allows a disabled person to continue to receive benefits from Social Security Disability, and/or Medicaid while still benefiting from the funds that were placed in trust for him.

Leaving money to your brother outright, through your will, or even through a typical trust would not work, and would likely disqualify him from receiving his eligible government funding until the trust funds were depleted.

The trust does not need to be funded during your lifetime, but if it is funded upon your death, there would need to be reference to it in your will.

This type of arrangement is not something you can or should do without the expertise of an estate planning attorney.

Let me know if I can assist.

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Answered on 8/19/08, 12:02 pm


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