Skip to Content

We are a Veteran Owned Business, providing 20% discounts for Veterans, First Responders, Elementary and High School teachers. Please contact us to set up a phone or Zoom meeting. Taking care of you and your family, It's What We Do!

Klenk Law

Who gets the remainder of my son’s Special Needs Trust?

Posted on Thu Oct 22, 2015, on Special Needs Trust

From our “Ask a Question” Mailbag: I am planning to set up a Special Needs Trust for my son and place a gift in the trust each year to help provide care for my son after my death. If he dies without the entire amount being used, whom can I name as the beneficiary?

Most Recently Updated July 31, 2018.

Special-Needs-Boy

Special Needs Trust Remainder

Special Needs Trust Remainder

If I have the facts correct, you are thinking about forming an Irrevocable Trust for your son during your lifetime (“inter vivos”) and then placing money into the trust every year to create a pool of funds to provide care for your son after your death. I also assume, in order to provide the maximum tax benefits, you will use Crummey Powers to make these transfers free of Federal Estate Tax, and you will not serve as trustee.

If your plan is to keep these assets out of your taxable estate and to have them be sheltered from your future creditors, at your son’s death you should not name yourself, your estate or the creditors of your estate as beneficiary of the remainder. Instead, you are free to name anyone else or a charity. To maximize the tax benefits, you could have the remainder pour into a new trust for the successor beneficiaries. This would shelter the remainder from the successor beneficiary’s creditors, spouses and lawsuits.

More Planning Questions?

The special needs trust is only a piece of the Estate Planning process. By all means, if you want to learn more, please read my more detailed article, Estate Planning Everything You Need to Know.

In Conclusion: Special Needs Trust Remainder

I hope that this article was helpful in explaining a Special Needs Trust. Further, I included links to even more detailed information on my website so you can learn more. Therefore, please contact me and let me know how I did. Certainly, your comments and questions are welcome!

Let our Estate Planning lawyers help walk you through what can be a confusing process. To begin with, call to speak to one of our experienced estate planning lawyers.  By all means, our lawyers are ready to answer your questions. In fact, feel free to contact our office for a free consultation. Ultimately our goal is to make the process as painless as possible!

Wills, Trusts, Probate, and Estate Litigation, It’s All We Do!

 

Tags:

Irrevocable Trust, Pennsylvania, Philadelphia, Special Needs, Special Needs Child, Special Needs Estate Planning, Special Needs Planning Attorney, Special Needs Planning Lawyer, Special Needs Trust

What Our clients are saying

Klenk Law Logo
Stars

Peter has done our family's trust and estate work since our children were born. He is not only extremely knowledgeable and honest but makes sure that our arrangements remain current with the changing legal landscape. I would give him my highest recommendation as a professional in his field.

Klenk Law Logo
Stars

Peter recently gave a presentation about Wills & Trusts at my employer, and it was fantastic! He was extremely knowledgeable and provided valuable information to the group. People were very engaged and asked several questions, all of which Peter thoroughly answered. Personally, my husband and I have selected Peter to help us with our estate planning, and he has been very helpful in providing us with all of the information we need to provide a secure future for our family. Thank you, Peter!

Klenk Law Logo
Stars

Peter and his associates made things easy for us.

Klenk Law Logo
Stars

I have worked with Peter Klenk & his associates for some time now and I have found them to be ultra-qualified, knowledgeable and diligent about their work. I highly recommend them.

Klenk Law Logo
Stars

Answered my question quickly and referred me to a colleague that could handle my problem

Let us put our expertise to work for you.

Free consultation within 24 hours.