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Don't Give Directly To Special Needs RelativesDon't Give Directly To Special Needs Relatives

Often, grandparents, aunts, uncles, godparents and the like want to help disabled relatives by leaving them some money. That's why every attorney familiar with drafting special needs trusts (SNTs) advises his clients (typically the parents of the disabled child) to tell friends and relatives about the SNT they've established for their child, and to let them know any contributions they wish to make

Michael Gilfix

November 1, 2009

8 Min Read
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Michael Gilfix

Often, grandparents, aunts, uncles, godparents and the like want to help disabled relatives by leaving them some money. That's why every attorney familiar with drafting special needs trusts (SNTs) advises his clients (typically the parents of the disabled child) to tell friends and relatives about the SNT they've established for their child, and to let them know any contributions they wish to make should go into this trust. That way, the disabled individual's access to public benefits won't be jeopardized.

But funneling all donors' money into one trust can create other difficulties — which attorneys should address when drafting SNTs.

The Small Inheritance Curse

Here's what can happen when relatives give money directly to disab...

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About the Author

Michael Gilfix

Gilfix & La Poll Associates, LLP

Michael Gilfix is a nationally known authority in the field of law, aging and estate planning. A 1973 graduate of Stanford Law School, he is a Fellow of the National Academy of Elder Law Attorneys (NAELA), a co-founder of NAELA, and a Certified Legal Specialist in Estate Planning, Trust and Probate Law. Mr. Gilfix regularly addresses professional audiences, including attorneys, physicians, certified public accountants, and financial planners, nationally as well as locally.
An entrepreneur in the legal field, Mr. Gilfix created the first legal aid program for elders in 1973. He served as Executive Director of that program, Senior Adults Legal Assistance (SALA) of Santa Clara County, for ten years. In 1983 he created the law firm that is today known as Gilfix & La Poll Associates LLP . 

Mr. Gilfix is a California legal advisor to Partnership For Caring, the national organization devoted to rights of individuals to make their own health care decisions. 
A highly respected practitioner and a prolific author, Mr. Gilfix is co-author of Tax, Estate & Financial Planning for the Elderly: Forms and Practice (Matthew Bender) and is the principal author of Medi-Cal and Asset Preservation, a book- length set of materials for practicing attorneys. He regularly contributes to a wide variety of legal journals such as Trusts and Estates Magazine, where his writings have discussed the role of personal values in estate planning, life care communities, and asset preservation planning.