Why Is a Special Needs Trust Important?
If you receive an outright inheritance from a friend or family member the inheritance could put you over the $80,000 asset limit. It is not necessary for your family to disinherit you, however, in order to protect your Pension benefits. If your family members provide for a special needs trust in their estate plan, your eligibility for Pension benefits will be protected.The trust would not be included with your other assets to determine if you are below the $80,000 asset limit but the trust will be there to supplement your needs. If you are a disabled veteran and you receive a lump sum from an auto accident or other personal injury lawsuit you could lose your Pension benefits. In that case you can transfer your assets to an irrevocable special needs trust for your benefit. The trust would be for your benefit but you would not be the legal owner of the trust so it would not be included in the Pension benefit asset limit. Whether the special needs trust is funded with assets from friends
