Category: Estate Planning

1. What To Do After Creating Your Special Needs Trust

   • Store your Wills and Trust safely.
     Keep your original Wills and Special Needs Trust in a secure place in your home where you store important documents. An unlocked fireproof file is ideal — unlocked because your Personal Representative (Executor) must be able to access them to deliver to your lawyer or file with the court. (You can get one by clicking here.)

   • Inform key people where they are.
     Let your Personal Representative (Executor) and the Trustee of the Special Needs Trust know where the documents are stored and how they can access them.

   • Provide copies.
     Give both your Personal Representative (Executor) and the Trustee of the Special Needs Trust a copy of your Will and Special Needs Trust — either in paper or electronic form.

   • Update your beneficiaries.
     Change the beneficiaries of your retirement accounts, life insurance policies, or other brokerage accounts intended for your child with a disability to the Special Needs Trust.

   • Inform family members about the Trust.
     Let relatives — especially grandparents, aunts, and uncles — know that you have established a Special Needs Trust for your child.
     This is important to prevent them from accidentally leaving money directly to your child in their Will.
     Instead, they should direct gifts or inheritances to the Trustee under “The [Your Child’s Name] Trust for the benefit of [Your Child’s Name].”

   • 💡 If Grandma, Grandpa, or anyone else wants to make a gift during their lifetime:
     Tell them not to give money or assets directly to your child. Any gift should go to the Special Needs Trust, so it does not affect your child’s SSI or Medicaid eligibility.
     For smaller gifts (under the annual gift limit), they might also consider contributing to your child’s ABLE Account if one has been established.

   • Decide whether to fund the Trust now or later.
     Most people do not fund the Special Needs Trust immediately — instead, it is typically funded after your death using the assets you’ve designated in your Will or beneficiary designations (such as life insurance or retirement accounts).

   • Do not use your child’s own funds.
     Never fund this trust with money or property that already belongs to your child with a disability. Those assets must go into a First-Party Special Needs Trust. (For more information, click here.)

   • Consider creating an ABLE Account.
     Depending on the amount of assets, an ABLE Account can be a helpful, flexible supplement to a Special Needs Trust.

   • Opening a bank account for the Trust.
     If you are funding the trust now, you will need a Tax ID Number (EIN) from the IRS. You can apply for one online (click here to go to the IRS website), or we can assist you with this process for a modest fee.
     Once you have the EIN and a copy of the trust, bring both to your bank to open the account.

   • Have questions? We’re here to help.
     If you have any questions about any of these steps, please contact us.

Need Information About Special Needs Trusts?

I am Tom Sannicandro, a Special Needs Trust Attorney and I am here to help. I am the founder of a nonprofit corporation that provides quality information about resources available to families as well as providing affordable Special Needs Trusts and estate planning for families. I have over 20 years of experience helping families just like yours. Find out more information at SpecialNeedsTrustsOnline.com or click here to set up a free appointment.