"Special Needs" Lies

[truthandhonor]

What is the name of your state? California

Special Needs trusts should not be for self-serving trustees to keep the other beneifiaries rightful portion in the guise there is a legal status for one benefiicary to fall into the same category as another with Special Needs.

One sibling is totally disabled and collects Supplemental Secuirty Income (SSI) and has MediCal for the most destitute, and cannot own anything over $2,000 because they would lose their free benefits. The other sibling worked and became disabled but is not on SSI. He is on Social Security Disablity Insurance (SSDI). The differences are not widely known. There are virtually no income limits for SSDI as it is not based on financial need. The trustee had to have connived the decedent into placing both siblings under a "Special Needs" language within the trust otherwise the trustee would have had to given the SSDI beneficiary's portion in cash. The trust specifies the money is only to supplement special needs so as to not lose the governement benefits. Since the SSDI person will not lose any governement benefit no matter how much he recieved, is this a breach on the part of the trustee? The sibilngs are middle aged, and the trust so large, that under a special needs status, niether will ever see even a small percentage of it. The elderly decendent did not know the legal status in differences of SSI and SSDI.Upon their death, it goes to the trustee's kid!!! Such an atrocity! Is it against the law to keep a beneficiaries rightful portion by placing a "Special Needs Tust" on someone who is not in the category to be under any special needs clause? The elderly decendent could not have known or understood the legal implications and differences of SSI and SSDI. The trustee has breached his duty in the family business as well and has a long history of dishonesty. Can anyone just go out and place a Special Needs Trust on a beneficiary when that the trustee can keep everything for himself and his kid?

 

[tranquility]

Grantors create the trust. They can give money to others as they desire. Special needs trusts serve a societally useful purpose, but take a lot of planning to work as intended. That's why it's good to go to an experienced attorney to create such trusts. Not only is there a good chance they can navigate all the traps in creating one, but also there is a greater chance the creation will have the effects as intended.

If a beneficiary can *prove* the grantor's wishes were not correctly represented by a trust, there may be some actions available. See an attorney who will advise--including malpractice. If a beneficiary thinks the free money he is getting is insufficent because his circumstances are different from a siblings or because the giver was not as legally/financially sophisticated as possible, sorry about that.

 

[truthandhonor]

Thank you, for your feedback. I am presuming you mean that if one can prove they are not on SSI and Med-Cal, never have been. and never will qualify for SSI/Medi-Cal in a million years, then they are not in the legal category of having a "Special Needs Trust" placed over them and should not be put in this position for the sake of legalities.

It seems to me:

1) A sibling who is a trustee and a lawyer who drafts a trust should apply due diligence to prove a beneficiary is on SSI and Medi-Cal thus the legal status of "Special Needs Trust" rather than allowing elderly grantors to fall prey to children who will be trustee and their schemes with intent to commit fraud. There should be laws governing the use of these SNT so that people are not ripped off of their rightful inheritance by connivers who lie and cheat to get what is not theirs...not have to give the benefiary their rightful portion purposely so they can keep it for their own kid when the beneficiary dies. Adoption is always an option to solve that I suppose, but it makes for unsafe circumstances by abusive trustees.
2) It seems wealthy families can abuse the system by subborning Medi-Cal fraud by way of Special Needs Trust. Were not these SNT created for middle to low income families who have little kids with serious disabilties and the parents have little to bequeeth them other than a small house or life insurance, thus what is going to happen if all they have left is to live on SSI?
3)For true SSI/MediCal ricipients, is a Special Needs Trust intended for wealthy families to
make their middle aged "children" live off "the system" when they can enjoy a much much better life and better health through the receipt of their equal portion?

 

[Just Blue]

I know this is an Old Post I don't even know if you still get on here but I desperately would like to get some advice from you I'm living this nightmare!

OP has been gone from this site since Oct of 2008. Nearly 17 years. Please start you own thread if you have a legal question(s).

 

[Just Blue]

High jacking/necroposting reported

 

[tinka]

OP has been gone from this site since Oct of 2008. Nearly 17 years. Please start you own thread if you have a legal question(s).

Okay I'm new I'll start my own question

 

[tinka]

Okay I'm new I'll start my own question I really need advice

 

[tinka]

And they will be a slim chance but this is what's happening to me and I would like to talk to someone that's dealt with it personally and see how it worked out for them after so many years if they ever got any justice in the wrongdoings

 

[tinka]

Meant knew it be a slim chance that this person was still on the site

 

[Just Blue]

Please start your own thread rather than highjack this long dead thread belonging to another member. Click on the link and then click on "Ask A Question" button in the upper right side of the page.

https://forum.freeadvice.com/forums/wills-trusts-and-estate-planning.113/

Thank you.