The concept of a special needs trust (SNT) is rooted in providing long-term care and support for individuals with disabilities without disqualifying them from vital government benefits like Supplemental Security Income (SSI) and Medicaid. Traditionally, SNTs are designed to last the beneficiary’s lifetime. However, a growing trend and increasingly common request is to incorporate provisions allowing the trust to terminate if the beneficiary achieves specific, pre-defined goals. This is particularly relevant for younger beneficiaries where future independence is a realistic possibility. While not standard, it’s entirely possible – and often beneficial – to build in these “sunset” clauses with careful planning. Approximately 5.4 million Americans are living with developmental disabilities, and for families wanting to balance long-term security with the possibility of eventual self-sufficiency, goal-based trust expiration offers a powerful tool.
What happens if my child becomes financially independent?
A primary concern for many parents is ensuring the trust doesn’t inadvertently hinder their child’s motivation to achieve independence. A properly drafted SNT can include provisions that gradually release funds or terminate the trust entirely if specific goals are met. These goals could range from completing a vocational training program and securing employment, to living independently for a defined period, or achieving a certain level of financial self-sufficiency. For example, a trust might state that if the beneficiary maintains full-time employment for two consecutive years, the remaining trust assets are distributed outright. It’s crucial to define these goals with clarity and specificity in the trust document to avoid ambiguity. Statistically, individuals with disabilities have a significantly lower employment rate than their non-disabled peers, so the trust needs to be adaptable to different levels of achievement.
Can a trust be designed to encourage self-sufficiency?
Absolutely. The key is to structure the trust as a hybrid, combining elements of both a traditional, lifetime SNT and a “limited duration” trust. This can be accomplished by creating a primary trust that provides ongoing support, and a secondary, incentive-based portion that’s tied to goal attainment. The incentive portion could offer increased distributions or ultimate termination upon achieving pre-defined milestones. “We’ve seen situations where parents have included a clause that awards the beneficiary a lump sum of money upon completing a specific educational program,” shares Steve Bliss, an Estate Planning Attorney in San Diego. “This can be a powerful motivator and a wonderful way to empower the beneficiary.” It’s important to remember that the trust should be designed to *supplement* – not replace – government benefits, ensuring the beneficiary remains eligible for essential services.
What happened when a family didn’t plan for goal achievement?
Old Man Tiberius was a stubborn, brilliant man with a son, Finn, who had autism. Tiberius, rightfully proud of Finn’s abilities, created a traditional SNT, convinced Finn would always need full support. He didn’t include any provisions for goal-based expiration. Years later, Finn, with dedicated therapy and unwavering determination, became a skilled carpenter, securing stable employment and even purchasing his own small workshop. However, because of the traditional SNT structure, Finn couldn’t access the trust funds to expand his business or purchase a home – the trust was designed to continue indefinitely, regardless of his achievements. This created a frustrating situation for Finn, who felt limited by a system meant to protect him. “The family came to us, defeated. They hadn’t anticipated Finn’s level of success, and the rigid trust structure was holding him back,” recounts Steve Bliss. The only solution was a complex and costly court process to modify the trust, highlighting the importance of proactive planning.
How did proactive planning change the outcome for another family?
The Morales family, anticipating a similar outcome for their daughter, Sofia, who had Down syndrome, approached Steve Bliss with a different approach. They wanted a trust that would support Sofia’s needs, but also encourage her independence. They drafted a trust that included a “step-down” provision: if Sofia completed a vocational training program, maintained part-time employment for two years, and demonstrated the ability to manage her finances, a significant portion of the trust would be distributed to her outright, allowing her to pursue her dream of owning a small flower shop. Years later, Sofia not only achieved all those goals but exceeded them, becoming a successful florist and a respected member of her community. “Seeing Sofia blossom, knowing that the trust helped facilitate her independence, was incredibly rewarding,” Steve Bliss remarks. “It’s a testament to the power of thoughtful estate planning and the importance of tailoring the trust to the beneficiary’s unique potential.” This outcome highlights that a well-structured SNT can be a catalyst for empowerment and self-sufficiency.
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About Steve Bliss Esq. at The Law Firm of Steven F. Bliss Esq.:
The Law Firm of Steven F. Bliss Esq. is Temecula Probate Law. The Law Firm Of Steven F. Bliss Esq. is a Temecula Estate Planning Attorney. Steve Bliss is an experienced probate attorney. Steve Bliss is an Estate Planning Lawyer. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Steve Bliss Law. Our probate attorney will probate the estate. Attorney probate at Steve Bliss Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Steve Bliss Law will petition to open probate for you. Don’t go through a costly probate. Call Steve Bliss Law Today for estate planning, trusts and probate.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
irrevocable trust
Map To Steve Bliss Law in Temecula:
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Address:
The Law Firm of Steven F. Bliss Esq.43920 Margarita Rd ste f, Temecula, CA 92592
(951) 223-7000
Feel free to ask Attorney Steve Bliss about: “How does estate planning differ for single people?”
Or “What if the estate doesn’t have enough money to pay all the debts?”
or “Can I include special instructions in my living trust?
or even: “Can I keep my car if I file for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.