Special needs trusts rise as families seek long term care options
Raw data on parents of disabled children turning to special needs trusts to preserve assets for future medical needs amid rising costs and extended lifespans. Merrill Lynch and Metropolitan Life expand programs guiding families through trust setup, calculators, and bill management while noting limits and profitability. Chicago area cases illustrate ongoing financial strains and reliance on Social Security and Medicaid.
MENTIONED IN THIS ARTICLE
Christopher Sulivan
Metropolitan Life Insurance Co
Jesse Chez
Amy Zier
Special-needs trusts grow in the United States
Nearly 15 million American families support a special needs child and the use of special-needs trusts to fund long term care is rising rapidly. Trusts avoid disqualifying government aid by placing assets with a trusted third party for the child’s benefit. Social Security data show tenfold growth in new SSI applications from special-needs trusts over a decade, though they remain a small share of total requests. Many families apply for other disability benefits based on work records, which are not income limited. An Evanston attorney notes that inheritances placed in a trust not controlled by the child generally avoid the $2,000 SSI limit.
MENTIONED IN THIS ARTICLE
Astate
Jesse
Special Feeds
de Frank- Chez
Merrill Lynch
Act of Charity
Bergmann
Jon
Special Needs Trust
Social Security Administration
Social Security
L. Mark Russell
Evanston
Ill
Russell
Trusts Help Families Preserve Benefits After Policy Caps
The article explains how discretionary trusts can shield funds from affecting a disabled child’s government aid. A noncustodial family member controls spending decisions, not personal liquidation, while assets remain under bank oversight. This preserves eligibility for programs like Supplemental Security Income.
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