The Trust That Every Will Should Have

by Cormac McEnery, Esq. 

When you leave someone a bequest in your last will and testament, it is your intent that the bequest should benefit that person, not cause them financial detriment.  Unfortunately, sometimes receiving a bequest under a will can cause the beneficiary to be disqualified from government benefits which they are currently receiving, or would have otherwise been eligible to receive.  While none of your beneficiaries may currently be receiving benefits such as Medicaid, veterans or Social Security benefits, at the time you draft your will, the same may not be true at the time the distributions under your will are made.

A will with a special needs trust that empowers your executor

Your last will and testament should empower your executor to elect to distribute any beneficiary’s bequest under your will into a special needs trust, thereby preserving the bequest.  The distributions from a special needs trust can be used to enhance the quality of life of the beneficiary.  The funds in the trust are available for things such as recreational items and services; individual support services; therapy; rehabilitation; training programs; education; transportation (including vehicle purchase); essential dietary needs; prescription medication; medical, vision and dental expenses; and other care that is not or not adequately covered by governmental programs.

In other words, the trust supplements the income and services provided by the government, without jeopardizing the beneficiaries eligibility for benefits, and also protects the assets of the trust from Medicaid reimbursement.  Upon the death of the beneficiary of the trust, the remainder of the trust is distributed to the person(s) you have designated in the alternative.

Contact a wills and trusts attorney

We serve clients from New York City (Manhattan, Bronx, Brooklyn, Queens), Westchester, and Nassau and Suffolk Counties.   If you would like further information regarding special needs trusts or discretionary testamentary special needs trusts, or to set up a free consultation with our experienced trust and estate planning attorney, contact Cormac McEnery or call 1-888-368-4329.