Supplemental Needs Trust

[augoldminer]

Does any one on this forum know how or if a disabled veteran receiving a VA pension can use/have a "supplemental needs trust" set up by the family trust

To receive the inheritance of a father at his death.

It is my understanding that this will let the veteran get the use of the inheritance money for dental, eye care, car repairs, insurance, getting a replacement car,gas money, schooling or other special needs etc, without the loss of his VA disability pension.

And no the father can not set this up at this time as he has alzheimer's.

And the veteran's disability is physical not mental

so he does not need a guardian to administer it.

[free_spirit_etc]

You are probably going to want to see an attorney on this one. Special Needs Trusts can get kind of tricky. I've looked into these for quite some time - as my son is developmentally disabled.

But, yes a trust can be set up to SUPPLEMENT - and NOT REPLACE any government benefits. It is based on the idea that your father has no legal duty to support you - and therefore he can set money aside in a trust - and the trust does not have to be used for your support. With your father unable to set up the trust - you would need to check into other ways it can be set up.

I don't think you would have to have a guardian - over either your person or your estate - but the trust would have to have a trustee. YOU could not have any decision making capacity over the money. And actually the trust would not legally be YOURS. The money belongs to the trust and it can be spent on you (you are the beneficiary of the trust - but the trust is it's own entity).

I know the trustee has to have complete discretion over how the money is spent. That doesn't mean the trustee can't listen to your opinion - but they have to have complete legal control of the money - and complete discretion as to how it is spent. (Therefore - no one can order them to spend it any other way).

I am not sure how the VA handles "in kind" contributions.

I know with SSI - a trustee has to watch out paying for any housing or food costs - but they can pay for other things (but not give the person the money directly). And they also have to watch purchasing things for the beneficiary that would put them over the asset limits.

Even many estate attorneys don't handle special needs trusts. But some attorneys specialize in them. Everything has to be worded "just right."

A good place to seek more info on these is also in forums for parents of children with disabilities.

Free

Does any one on this forum know how or if a disabled veteran receiving a VA pension can use/have a "supplemental needs trust" set up by the family trust

To receive the inheritance of a father at his death.

It is my understanding that this will let the veteran get the use of the inheritance money for dental, eye care, car repairs, insurance, getting a replacement car,gas money, schooling or other special needs etc, without the loss of his VA disability pension.

And no the father can not set this up at this time as he has alzheimer's.

And the veteran's disability is physical not mental

so he does not need a guardian to administer it.

[free_spirit_etc]

I am not sure if this link will be too long - but I searched Veteran Special Need Trust in Google - and it brought up this book.

http://books.google.com/books?id=dnfbveKmF...Z9qu71051GdSXik

In this - It states that the VA General Council decided in one case that the trust DID count as a resource. But it points out that the trust stated it ws to pay for food, shelter, clothing.

So, if the trust designates that trust money has to be used for that - then they can count it.

I remember they USED to word them to specifically state that the trust COULD NOT be used to pay for anything the government would pay for - and could ONLY be used for SUPPLEMENTING.

But the going thing is that the trust has to allow the trustee COMPLETE discretion.

The trust can't state one way or another what the money can or cannot be used for.

I think that is to protect the trusts more. Because NO ONE can come in and MAKE the Trustee to pay for ANYTHING. The money is only available for whatever the trustee decides it is available for.

http://www.va.gov/vetapp05/files2/0513555.txt

The above link is a BVA decision - where they DID count the Trust - but that was because the veteran had received an inheritance - and converted that into a trust. As the money was HER propery before going into the Trust - they counted it.

They specifically say:

The question which must be answered is whether the Trust is

the veteran's property. The Board finds that it is. While

it is true that her trustees retain control over the trust,

the Board finds that it must be considered her property in

light the applicable GC opinion, which is binding precedent

on the Board.

I only came up with two results on a BVA search -- it is an interesting case - but it seems like the decision to count the trust was because it became her property and THEN was transfered into the trust.

Again, it is worth investing in a specialized attorney for setting these up right.