Legal Question in Wills and Trusts in Massachusetts

Re: Trust to recieve gifts for a child

You do NOT want to set up a UTMA account -- these accounts must be turned over to the child when she turns 18, and will then disqualify her for public benefits, including MassHealth and Supplemental Security Income.

The better approach is to set up a supplemental needs trust. These trusts are structured to preserve the right to public benefits -- which is absolutely critical given the cost of raising a child with significant disabilities. The parents also need to get their own estate planning in order, and structure their plan to ensure that trustworthy trustees and guardians are nominated to protect their child's interest in the event they cannot do so. These trusts are usually irrevocable, but there are certain circumstances where a revocable trust is possible.

I have been practicing special needs planning since 1998 and have counseled many families in this situation. Please feel free to contact me.

Re: Trust to recieve gifts for a child

I would recommend a special needs trust, which permits the chid to accept funds that may be used to supplement any governmental benefits he or she may otherwise be entitled to receive based on his/her capabilities as the years pass. Beyond the legal issues, I would also recommend getting a more accurate assessment of the potential disabilities, to the extent possible. The child could be eligible (and may already be receiving) services aimed at assisting both the child and the parent(s) in dealing with the situation and even treating or providing appropriate therapies for it.

This office specializes in disability planning and I would be happy to assist you in any way.

Re: Trust to recieve gifts for a child

The best way to handle this money is to set-up a trust. The trust would be irrevocable and depending upon the child's future needs and development would be used for its support and treatment but it should be designed so that any benefits the child might be entitled to under medicare, medicaid and social security are not effected or the effect is minimal.

Please feel free to contact me without obligation.