Special Needs Trust Fairness Act is Law!

On December 13, 2016, the President signed into law the 21st Century Cures Act, which included the Special Needs Trust Fairness Act which allows disabled persons to establish their own Special Needs Trust under 42 U.S.C 1396p(4)(4)(A). Previously, only a parent, grandparent, guardian or court could establish such a trust. This fixes a long-standing issue for competent adult disabled individuals who could benefit from a special needs trust but who had no living parent, grandparent, and who did not otherwise need a legal guardian or court proceeding. With this type of Trust, a disabled individual under age 65 may now establish and sign their own special needs trust as Grantor, and put her own assets and monies into said trust for their benefit and still qualify for means-tested government benefits, such as Supplemental Security Income (SSI) and Medicaid insurance (AHCCCS/ALTCS).  No longer will competent adult individuals in need of a special needs trust, but without parents or grandparents, face undue legal difficulties.