QUESTION
Can a parent with a special needs fund ask permission to take out money for their child?
Asked on May 05th, 2014 on Trusts and Estates - California
More details to this question:
My mother just recently received a special needs trust. However as her daughter, she is wondering weather or not its legal for the executive of her fund to take out money for her and have her give it to me if I was in financial trouble?
1 ANSWER
Taxation Attorney serving Santa Monica, CA
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Lyster, Inc.
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Typically, a special needs trust is useful for avoiding "means testing" issues for public assistance. The trust can only be used for "special needs" that are not provided by public assistnace but which do not disqualify the beneficiary for the same public assistance. If the beneficiary is able to withdraw money for other purposes (such as for making gifts) the trust would most likely disqualify the beneficiary from receiving public assistance. Therefore, it is unlikely that the trust will permit such things to happen.
Answered on May 05th, 2014 at 9:33 PM