Some attorneys tell me they can prepare a testamentary special needs trust for me. What is the difference between a testamentary special needs trust and a stand-alone Special Needs Trust?
Some attorneys add a few provisions inside a regular revocable living trust and advise their clients that it is a sufficient special needs trust. The provisions are actually a testamentary trust, and consist of about ten paragraphs, which direct the trustee to set up a trust for your child with Autism after both of you (parents) die. The testamentary special needs trust has no name immediately because it does not exist yet. After both parents die, it becomes irrevocable, and without going to court, it cannot even be amended to be made current with changes in the law. As part of the parents’ estate, it is subject to the parents’ creditors and lawsuit claims. It does not name an advocate, or usually successor trustees, and does not nominate a conservator or guardian for the special needs person. In addition, grandparents or other persons who die before the parents cannot leave inheritances to it. Only the parents, or persons who die after the parents can fund a testamentary trust. If the
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- Some attorneys tell me they can prepare a testamentary special needs trust for me. What is the difference between a testamentary special needs trust and a stand-alone Special Needs Trust?
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