Legal Question in Wills and Trusts in Illinois
trust for the disabled
I have a retarded sister who is on medicare and medicaid. I hear that there's a trust that can be set up to accept money for the disabled(gifts,inheritances, etc) so they will not lose their eligibility for medicare. My retarded sister is married to a guy with questionable scruples. My father is in ill health, and his estate will be split among his six children. Since my retarded sister is married, can we set up one of these trusts in her name, for any inheritance to be held? Can a family member be a trustee, or, since she is married, would it have to be her husband? Thank you.
1 Answer from Attorneys
Re: trust for the disabled
What you have heard is correct -- it is called a "special needs" or "supplmental" trust. Your dad's will or trust should definitely not provide for an outright gift as that would lilely disqualify her from medicare, medicaid and SSI and possibly subject previous disbursements to recapture by the state.
The trust can be done within a will, or better yet, in a living trust. It will give the trustee discretion to make distributions or payments for thins that SSI does not cover and to supplement it. The trustee does not have to be her husband, another family member would work.
If your dad is interested in stting up this type of trust, fell free to check out our website at http://www.illinoisestateplan.com and give us a call to set up an appointment.
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