Menu ${site.data.firmName}${SEMFirmNameAlt}${site.data.firmName}${SEMFirmNameAlt}
Practice Areas
Let's Get Started!

Special needs: trust options come in several types

It isn't easy being a parent. Even if all goes well, taking care of a child requires a major commitment of time, energy and money.

But what happens when a child has special needs? When that is the case, parents need creative strategies to make sure that a child receives appropriate financial protections for handling available resources.

One of those strategies is to create a special needs trust. For families in Massachusetts and across the country, establishing such a trust can be a good way to help a child whose special needs require an additional level of estate planning.

Families who are considering the creation of a special needs trust should be aware that these trusts are not one-size-fits-all. In particular, a basic distinction is between trusts established by third parties and those established using the beneficiary's own resources.

Third-party trusts are often created by wills. There is therefore no immediate funding to put them into effect.

But a special needs trust can also funded by the beneficiary's own resources. A first-party trust can use assets such as money from the settlement of a lawsuit or money that was given to the beneficiary by a family member.

There is also a third type of special needs trust. A pooled trust is a way for grantors with relatively few assets to combine those assets with those of others. 

Of course, the type of special needs trust that is most effective in a given case depends on the specific facts of that case. If there are disability issues present, then Social Security disability considerations should also be considered in the planning process.

Source: The Fiscal Times, "Estate Planning Guide for a Special Needs Child," Sonya Stinson, July 10, 2013

Serving businesses and individuals throughout Massachusetts

Waltham Office
375 Totten Pond Road
Suite 200
Waltham, MA 02451

Toll Free: 888-759-5109
Waltham Law Office Map

Braintree Office
25 Braintree Hill Office Park
Suite 406
Braintree, MA 02184

Toll Free: 888-759-5109
Phone: 617-523-1555
Braintree Law Office Map

Cranston Office
200 Midway Road
Suite 159
Cranston, RI 02920

Toll Free: 888-759-5109
Cranston Law Office Map

Hyannis Office
1330 Phinney’s Lane
Hyannis, MA 02601

Toll Free: 888-759-5109
Hyannis Law Office Map

Norwood Office
520 Providence Highway
Suite 10
Norwood, MA 02062

Toll Free: 888-759-5109
Norwood Law Office Map

Westborough Office
276 Turnpike Road
Suite 228
Westborough, MA 01581

Westborough Law Office Map

Woburn Office
444 Washington Street
Suite 203
Woburn, MA 01801

Woburn Law Office Map