The Listen to Lawrence Letter: Special Needs follow up questions

January 20, 2025
January 9, 2025 • Volume 6 Issue 312
A follow-up question to my last LISTEN TO LAWRENCE LETTER…read on:

CLIENT QUESTION:

If I leave money in a Special Needs Trust for my son, can the trustee buy him a home? What happens to the home at my son’s death?

MY RESPONSE:

The SNT is called a 3rd party trust because you, as a 3rd party, created and funded this trust for someone else (your son). A 3rd party trust can absolutely buy a home for your son. The trust can also pay expenses on the home for the benefit of your son. Be careful though because some household expenses that the trust pays may or may not affect his SSI payments. Nevertheless, upon his death (unlike a 1st party SNT), you can direct where the assets in the trust should go…perhaps to your other children. The government will have no right to reimbursement.

I hope this helps! Please forward this email to your friends and relatives to share these informative answers to some very commonly asked questions.

 

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As always, please send me your questions. If you are thinking about it, others are probably too, so my answers will no doubt help you and many others.

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