Can an aunt set up a trust fund for their niece or nephew? 11 Answers as of June 21, 2013

Can I, as an aunt, set up and (initially) fund a special needs trust for a disabled niece/nephew? Or is the set up limited to Parents/Grandparents?

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North Sound Law, PS
North Sound Law, PS | Spencer Bergstedt
You can absolutely set up a Special Needs Trust for your niece or nephew. You need not be a parent or grandparent to create such a Trust.
Answer Applies to: Washington
Replied: 9/23/2011
Goldsmith & Guymon
Goldsmith & Guymon | Dara Goldsmith
If you are using your own funds, then yes. If you are using money that your nephew would be entitled, i.e. a settlement, there are limitations. Special Needs Trusts and Supplemental Needs Trusts should be established by an attorney with experience in that area of law. We charge $100 for a one hour consultation with an attorney.
Answer Applies to: Nevada
Replied: 9/23/2011
Minor, Bandonis and Haggerty, P.C.
Minor, Bandonis and Haggerty, P.C. | Brian Haggerty
Yes, you can. Other restrictions may apply with a special needs trust.
Answer Applies to: Oregon
Replied: 9/22/2011
The Law Offices of Laurie E. Ohall, P.A.
The Law Offices of Laurie E. Ohall, P.A. | Laurie E. Ohall
You can most certainly set up a SNT for your niece or nephew - anyone can set up a trust for someone else - if they have special needs and are receiving government benefits, you want to make sure that they have no control over the trust. The types of trust that are limited to a parent or grandparent setting it up are known as D(4)(A) trusts or D(4)(c) trusts (pooled trusts) that have payback provisions in them. The type of trust that you are contemplating setting up does not need to have a payback provision (to the State of Florida to the extent they have paid benefits on behalf of the beneficiary) because it is not the beneficiary's money going into it. It is your money. You should make sure to speak with an attorney that has experience with special needs trusts.
Answer Applies to: Florida
Replied: 9/22/2011
Paul Nidich, Attorney at law
Paul Nidich, Attorney at law | Paul Nidich
Antone can establish a third-party special needs trust. But, I suggest you do so in concert with the parents to coordinate trustees and other relevant issues to save problems of unnecessary and possibly expensive duplication.
Answer Applies to: Ohio
Replied: 9/22/2011
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