The Special Needs Trust Fairness Act is designed to address the fact that currently, a capable person with a disability is unable to establish their own Special Needs Trust.  Under current law, only parents, grandparents, a legal guardian, or the court can setup a Special Needs Trust for a disabled person.  This law, in its current state, creates a disability rights issue, as it incorrectly assumes that a person with a disability does not have the mental capability to enter into a contract.

The Special Needs Fairness Act of 2013, addresses a problem for many persons with disabilities.  Special Needs Trusts allow a person with a disability to set aside assets to supplement daily living expenses and provide additional care when government benefits are not sufficient.  Such a trust now must be settled by a parent, grandparent, guardian, or the court, even when the person is not incapacitated.

If this law is enacted, this would eliminate the restriction placed upon disabled individuals, and allow them to set up their own Special Needs Trusts.  These Trusts allow for the assets of a disabled person to be held in trust in order to help supplement their daily living expenses.  These types of trusts are commonly used to avoid impoverishing the disabled person while maintaining their eligibility for government assistance.

The cost of living can be expensive.  The special needs community depends on these trusts to help offset some of those cost.  The passage of the Special Needs Trust Fairness Act into law will relieve the burden our special needs community faces when trying to establish a Special Needs Trust for themselves.

For more information on Special Needs Planning, click here.