Part Six: What is new in the Social Security Administration’s Approach to Special Needs Planning and Trusts?

Retroactive Amendment of Trust - Nunc Pro Tunc - Not Likely to be Accepted by SSA. In reviewing an existing special needs trust, the Social Security Administration may determine that the trust fails to comply with one or more SSA rules and regulations. This may occur, for example, where the trust permitted the payment of [...]

Part Five: What is new in the Social Security Administration’s Approach to Special Needs Trusts?

"Savings Clauses" are of No Help Under the POMS. In drafting a special needs trust, many practitioners include a "null and void" or "savings" clause in the document. These clauses operate to cure defects in a trust and preserve the remaining trust provisions. They prevent the trust from being determined to be invalid by removing [...]

Part Four: What is new in the Social Security Administration’s Approach to Special Needs Trusts?

Revisiting the "Sole Benefit Rule." Under Social Security Administration rules, a self-settled special needs trust must be established "for the sole benefit of" the individual.  A trust is considered established for the sole benefit of an individual if the trust benefits no one other than beneficiary at the time the trust is established or at [...]

By | May 14th, 2013|Social Security|0 Comments

Part Three: What’s new in the Social Security Administration’s Approach to Special Needs Trusts?

Third Party Vendor Payments on Behalf of the Disabled Individual. When a third party, such as a family member, makes a payment directly to a vendor who provided goods or services to the disabled individual, this is known as a third party vendor payment (TPVP). POMS SI 00835.360A. The vendor might be the seller of [...]

By | May 8th, 2013|Social Security|0 Comments