Sometimes It's Better Not To Use a Special Needs TrustSometimes It's Better Not To Use a Special Needs Trust
Ten years ago a quiet revolution took place in the planning of estates and benefits for people with disabilities. On Aug. 10, 1993, President Clinton signed the Omnibus Budget Reconciliation Act, which included a provision authorizing the creation of a new form of special needs trust. This unique vehicle, called the OBRA trust and funded with a disabled beneficiary's own assets, allows the beneficiary
Keith Bradoc Gallant, partner, and Carolyn Reers, counsel, Cummings & Lockwood LLC, New Haven, Co
Ten years ago a quiet revolution took place in the planning of estates and benefits for people with disabilities. On Aug. 10, 1993, President Clinton signed the Omnibus Budget Reconciliation Act, which included a provision authorizing the creation of a new form of special needs trust. This unique vehicle, called the OBRA trust and funded with a disabled beneficiary's own assets, allows the beneficiary to shelter unlimited amounts of assets but still qualify for medical assistance under Title XIX of the Social Security Act.
The availability of these trusts means disabled people can enjoy the financial benefits of personal injury or medical malp...
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