Legal Question in Wills and Trusts in Illinois
Trust for Mentally Retarded Child
An elderly couple have a 30+ year old mentally retarded son they wish to establish a trust for before they die or become incapacitated(or so they think). Will this trust reduce or eliminate any social security payments or other funds that this child may be entitled to if he has a trust?
1 Answer from Attorneys
Re: Trust for Mentally Retarded Child
IF IT IS DONE PROPERLY it will not reduce or eliminate SSI or any state assistance and will not be subject to recapture by the state. The trust is called a "special needs" or "supplemental needs" trust. The idea is that the named trustee will have broad discretion to spend on behalf of the disabled son only for expenses that are a above and beyond what public assistance provides (e.g. extra clothing, toys, furniture, stereo, trips to the mall, etc.). The trust is a great idea and works very well.
However, if it is done wrong or they intentionally or accidentally leave property to their disabled son, it would be subject to recpapture by the state and/or may disqualify him from receiving future assistance.
Feel free to have the couple give me a call at (847) 991-2250 (Palatine) or e-mail at [email protected] if they want to discuss setting up a special needs trust.
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