How does a supplemental needs trust work and who should serve as trustee? – North Carolina Short Answer Under North Carolina law, a supplemental needs trust (often called a special needs trust) is designed to hold funds for a person with a disability without counting as that person’s own asset for means-tested benefits, as long…
What happens to any remaining funds in the trust when the beneficiary passes away? – North Carolina Short Answer Under North Carolina law, what happens to remaining funds in a supplemental needs trust after the beneficiary dies depends on how the trust is structured and funded. For many Medicaid-related supplemental needs or pooled trusts, the…
Who can serve as trustee, and how should distributions be handled so we don’t jeopardize benefits? – North Carolina Short Answer Under North Carolina law, a trustee of a special needs or supplemental needs trust is typically a trusted individual (such as a family member) or a professional or nonprofit trustee, including approved pooled trust…
How can I set up a special needs trust so my child keeps disability and other government benefits? – North Carolina Short Answer In North Carolina, a properly drafted special needs trust (also called a supplemental needs trust) can hold money for a child with a disability without counting as the child’s own asset for…
Should this be a first‑party or third‑party special needs trust if the funds come from my child’s inheritance? – North Carolina Short Answer Under North Carolina law, an inheritance left directly to a child with a disability is treated as the child’s own money, so it usually must go into a first-party (self-settled) special needs…
Can a disclaimer route the share to the parents, and are there tax or benefits issues for us? – North Carolina Short Answer Under North Carolina law, a valid disclaimer (also called a renunciation) causes the disclaimed inheritance to pass as if the child had died before the person who left the property. That means…
Should we use a first-party special needs trust or an ABLE account? – North Carolina Short Answer Under North Carolina law, a first-party special needs trust (often established under Chapter 36D) and a North Carolina ABLE account are both tools that can help a disabled adult keep means-tested benefits while setting aside funds. They are…
What happens if the inheritance is paid to my child before the trust is created? – North Carolina Short Answer Under North Carolina law, if an inheritance is paid to a minor child before a trust is actually created, the money does not automatically “move” into the later trust. Instead, the funds are typically held…
What are the pros and cons of using a supplemental needs trust instead of leaving assets directly to a beneficiary who receives public benefits? – North Carolina Short Answer Under North Carolina law, a properly structured supplemental needs trust (often called a special needs trust) can hold assets for a disabled beneficiary without those assets…
What expenses can a supplemental needs trust pay for without affecting eligibility for needs‑based benefits? – North Carolina Short Answer Under North Carolina law, a properly structured supplemental (special) needs trust can pay for many “extra” goods and services that improve a disabled beneficiary’s quality of life without counting as that person’s own assets for…