After failing to pass in the last legislature, the Special Needs Trust Fairness Act was reintroduced by a bipartisan group of Congressman. Specifically, the act applies to first-party special needs trusts which are trusts that are established using the incapacitated person’s own assets to provide additional financial support while they are receiving certain government benefits. Current law requires that the first-party trust be requested by guardians or the court with the new legislation seeking to allow an otherwise mentally competent individual to set up a first-party trust without the intervention of any other party. Proponents of the bill argue that forcing a person to seek a family member or court to set up this type of trust imposes an unnecessary burden without any benefit.
See David H. Lenok, Spotlight: The Special Needs Trust Fairness Act of 2015, Wealth Management, July 22, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
