Special Needs Trust & Inheritance & Workshop 5-8-2014

Special Needs Trusts and Inheritance:

Q: Our father just passed away and left $400,000 in his revocable living trust to myself and my brother. My brother is on SSI and will lose his benefit when he receives the inheritance. What should we do?

 A. There is a remedy for this problem when someone dies, and their revocable living trust does not have a special needs trust provision for a special needs beneficiary. Under the law, the revocable living trust became irrevocable when your father died. As a result, it is too late for you to amend the trust to include a Special Needs Trust for your brother.

 However, the California Probate Code does allow the Court to amend the trust to include a special needs trust upon a petition to the Court from the special needs beneficiary. The special needs beneficiary files a petition with the court requesting that the trust be modified to include a special needs trust for himself for his part of the inheritance. Your brother, who will be the petitioner, will tell the court in the petition that had your father gone to an elder law attorney who would have advised your father about the addition to his revocable living trust of a special needs trust for your brother, that your father would have requested that addition.

The courts have been willing to grant these petitions. After the court signs its order for the modification of your father’s trust, the inheritance for your brother will flow into his new Special Needs Trust and he will not lose his public benefits. Your Walnut Creek Elder Law Attorney can advise you and help you in the preparation of a petition for the modification of a revocable living trust after the maker of the trust dies.

This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with long-term care planning, asset-protection plans, special needs trusts, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

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