How Do I Get Rid of a Special Needs Trust?
Almost every state’s probate code includes a right to terminate a trust for a variety of reasons. Some reasons may be if the original intent behind setting up the trust no longer applies or if there has been a change in circumstances. Even if your state does not have specific laws, probate courts are courts of equity (meaning that they decide cases based on fairness rather than based on law) and you may be able to argue that a special needs trust is no longer needed. However, this does not mean that a trust should be terminated. If the trust is a first-party special needs trust and your son or daughter used Medi-Cal, then terminating the trust could trigger a payback to the state’s agency for all Medi-Cal benefits paid for your child. In addition, if your child receives a large sum of money without any restrictions at the age of 18, the money will probably not be spent well. Keeping assets in a trust may allow your young child time to mature and learn money managing skills. The trust would keep the assets secure and the money may be used at a later time.
You don’t want to wait to plan for your special needs child’s future. Contact your special needs planning attorney at (888) 597-9685 TODAY.