Special Needs Trust Fairness Act House Update
When we last checked in with The Special Needs Trust Fairness Act the Senate passed it. That was in September of 2015.
We have been waiting on the House of Representatives ever since.
Well good news, the House finally go the Bill out of committee. This means it is one step closer to getting a vote.
Disabled individuals will finally be able to create their own Special Needs Trust for their own assets if the House does finally pass it sometime this year and it becomes law.
Who It Doesn’t Help
There are two other situations which the Act will not have an impact on.
The first situation deals with mental disabilities. If the person does not have the mental capacity to sign documents like trust agreements then this law won’t help. People in that category will need to make other arrangements.
The second situation is when a parent or grandparent (or anyone) wants to leave a legacy to a disabled individual without getting stuck with a payback provision. People in this category will need to use a third party Special Needs Trust in order to avoid the payback provision that goes along with the type of Special Needs Trust created with assets a disabled person already owns.
So stay tuned to see if and when the government finally completes this huge change in the law.