What is a testamentary special needs trust?
A testamentary special needs trust is a special needs trust
that goes into effect when the trust maker dies. There are two ways to put a special needs trust
into effect – you can set it up and put it into effect while you are alive (an
inter vivos trust), or you can set it up and have it go into effect when you
die (a testamentary trust). In either
case, after the trust goes into effect, in order to protect the beneficiary’s
eligibility for government benefits, it must be irrevocable. So the advantage of making a testamentary
special needs trust is that you can modify it while you’re still alive, because
it hasn’t yet gone into effect.
Learn more about Special
Needs Trusts on Nolo.com
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