Will a Divorced Couple’s Separate SNTs for Their Children Cause Problems?

A divorced couple has separate special needs trusts (SNTs) for their two special needs adult children.  The father has one trust for each beneficiary and the mother also has one trust for each beneficiary. The father does not want the mother to contribute to the trusts he has set up. Will this cause legal problems?

Not from a public benefits perspective. A person is entitled to have any number of SNTs. However, from a practical standpoint it could be messy, especially if the trusts are run by different people and these people do not get along. For example, if the beneficiary needs a cell phone bill paid, which trust will agree to pay it? Will one trustee decide not to make any payments until the other trust is terminated? However, if the trustees get along and work on a budget together, it should work fine.

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Article Last Modified: 12/02/2016

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