Skip to Content
Klenk Law

Who Receives What Remains In the Special Needs Trust at My Son’s Death?

Posted on Mon Sep 26, 2016, on Special Needs Trust

From our “Ask a Question” Mailbag: Special Needs Trust Remainder Beneficiary

Most Recently Updated August 9, 2018.

“At my son’s death, can I decide who receives any remaining money in the Special Needs Trust?  I want to set up a Special Needs Trust for my son in my Will.  But, when he dies, can my daughter receive what money remains?”

 

Special Needs Trust Remainder Beneficiary

First, let me commend you on setting up the Special Needs Trust for your son in your Will.  Planning will give you peace of mind, and critical protection for your child.  If correctly drafted, your Special Needs Trust will provide for your son’s care while allowing him to qualify for needs-based government benefits.  Benefits such as Medicaid can be vital to his well-being.

A Third Party Special Needs Trust Allows You to Pick Who Receives the Remainder at the Beneficiary’s Death.

A Special Needs Trust that you create using your money is called a Third Party Special Needs Trust. “Third Party” indicates that the Special Needs Person has not created the Trust using his money.  When a Special Needs Person creates a Special Needs Trust using his money, it is called a “First Party” Special Needs Trust.  For more information about the various types of Special Needs Trusts, read more.

You have no legal obligation to leave your son any inheritance. This fact allows you great flexibility in creating your Special Needs Trust. If you don’t have to leave him any funds, then any limitations you choose to place on those funds is outside of his control, and the funds are not counted as his. Certain terms must exist for your trust to qualify as a Third Party Special Needs Trust. These conditions allow your son to benefit from the trust while qualifying for his needs-based government benefits. But after satisfying those terms, you are free to decide many aspects of the trust including dictating who receives any money in the trust at your son’s death.

Have the Remaining Funds Pass Into a Protective Trust for Your Daughter.  Protect the Assets From her Divorce and Creditors.

You have great flexibility in deciding who and how the remaining funds pass at your son’s death.  For example, you could say that whatever remains passes outright to your daughter.  But, if you do, then those funds will be available to your daughter’s creditors or become embroiled in a failed marriage.  Instead, you could have the Special Needs Trust pour into a different, more flexible trust at your son’s death.  Think of this as a protective wall around the inheritance sheltering her. You may grant her broad use of trust funds, but deny her future spouse from accessing the assets in a divorce.

A Third Party Special Needs Trust can be a flexible document, providing protection not only to your Special Needs Child but also to the rest of your family. Take the time to investigate all the options available to you.

For More Special Needs Trust Information:

For more information see my Article Special Needs Trusts: Everything You Need to Know.

More Planning Questions?

Special Needs Trust Remainder Beneficiary 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 Beneficiary

I hope that this article was helpful in explaining Special Needs Trust Remainder Beneficiary. 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:

Estate Planning, Irrevocable Trust, Special Needs, Special Needs Child, Special Needs Estate Planning, Special Needs Planning Attorney, Special Needs Planning Lawyer, Special Needs Trust, Trusts

What Our clients are saying

Stars

Peter provided outstanding advice and preparation of a will and trusts.

Stars

Peter was excellent. He explained everything very clearly and is super friendly. My wife and I originally tried using a lawyer through group legal coverage, but unfortunately the old adage - "you get what you pay for" - applied to the other lawyer, and we decided to go with a real professional.

Stars

When it came down to picking the right attorney to handle my affairs, I knew right away it was this firm. From speaking to their secretary to speaking to Peter I knew I was making the right decision. After only a few mins Peter knew right away what I was looking for and handled all my questions professionally and even gave me great feedback that put my mind at ease. All that without even giving a single penny! So of course I hired him! So far so good...

Stars

AWESOME LAWYER! Peter Klenk is an exceptional attorney and a very nice person! Today I spoke with Peter about estate planning and was impressed with by his professionalism, cordiality, and attention to detail. I highly recommend Klenk Law for probates, wills, trusts, and other issues germane to estate planning!

Stars

Great friendly staff

Stars

Tremendous firm with bright, kind and tenacious people. Great representation for our family.

Stars

I'm totally satisfied with Klenk Law. Peter has a great legal mind with the personality of the guy next door.

Stars

Everything about my experience was a 10+! Peter and his staff made what I thought would be a difficult process easy and understandable. Every detail was handled correctly. No other firm could possibly do better than Klenk Law!

Stars

Peter and his staff are very responsive and always willing to help my clients and in a cost efficient manner.

Stars

Like another reviewer, I contacted Peter through his website using the free consultation link, for a question regarding PA inheritance taxes. The question was quite technical and difficult to explain, and the answer was nowhere to be found on the web. Peter grasped precisely what I was asking, and provided a clear, helpful response (with a touch of humor) the very next day.

Stars

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

Stars

Mr. Klenk, quickly understood the circumstances presented and provided clear and concise advice. This advice provided me with the information I required to progress the case to my advantage.

Stars

Peter is excellent. I had a very complicated situation with my parents' estate planning and potential Medicaid needs. Peter was very knowledgeable in estate planning matters, able to define the best solution for the situation. Additionally, he was congenial and able to communicate effectively to my senior citizen parents the benefits of estate planning. He earned my trust, and more importantly, my parents' trust in a 45 mins consultation period. Highly recommend Peter. He is very easy to work with.

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!

Stars

Peter provided outstanding advice and preparation of a will and trusts.

Stars

Peter explained things in a way that was easy to understand. Everything was done in the time frame he said it. Could not have been better!

Stars

You & your staff are the best thank you for everything.

Stars

Peter and his staff handled all of our needs in a very professional and timely matter.

Stars

Peter Klenk made a complex subject understandable and allowed us to move forward with our estate planning. He was patient with our questions and creative in the solutions he proposed.

Stars

Peter explained a complex subject very clearly, helped us to decide the best approach to managing our estate and then made it very easy for us to execute the required documents. He will be a valuable resource for years to come and clearly has a great understanding of estate law that will lead to innovative solutions for us. I would unhesitatingly recommend him for estate planning.

Stars

Fantastic customer service. Very personable and most importantly they provide great explanations of what is required based on your individual needs. Highly recommend Klenk Law for anyone that needs to create a will and estate documents.

Stars

Always professional and very responsive. Everyone on the staff that I have worked with. I look forward to continuing our relationship.

Stars

Surprisingly easy

Stars

Affable...yet surprisingly cerebral estate planning atty. High marks all the way around.

Stars

Peter and his associates made things easy for us.

Let us put our expertise to work for you.

Free consultation within 24 hours.