The purpose of a special needs trust is usually to provide some kind of supplemental support for an individual with special needs without eliminating their eligibility for certain kinds of state aid, such as Medicaid benefits. A special needs trust provides structured distributions that can last for life in some cases.
Family members and even nonprofit organizations can create and fund special needs trusts to help cover the cost-of-living expenses of an individual with special needs or supplement their standard of living. Putting together a special needs trust, especially as an individual or family member earmarking resources for a vulnerable loved one, it is often important to address the remaining assets in the trust.
Naming someone to receive the remainder of the trust is beneficial.
When someone chooses an individual to receive the remaining property in a trust or an estate, that individual is the remainderman. The inclusion of special language in a trust to designate someone to receive any remaining assets in the trust can help someone maximize the positive impact they create when planning their legacy.
In fact, some people choose to have the remaining assets in a special needs trust transferred to a non-profit or charitable organization that provides support for individuals with similar medical conditions to the original beneficiary of the trust. Others name family members or other loved ones as the recipients of any remaining assets in the trust after the beneficiary dies.
Planning for every eventuality when putting together a special needs trust can help people maximize the positive impact of their estate planning efforts.