$300,000 for the grandson, benefits and health coverage unaffected
CASE SUMMARY
Adaptation note: This story is adapted from similar matters handled by Lingtu Law and its peers. Names, places, dates and amounts have been changed, and the outcomes are presented as scenarios only. They do not reflect that similar cases will reach the same result.
Background
Ms. B's son is 22, has autism and lives at home. He receives monthly government disability benefits and relies on the state's low-income health coverage. The disability benefits have strict asset limits: if he has too much money in his name, the benefits stop, and his health coverage could be affected too. In 2024 Ms. B's father, whose health was declining, wanted to leave about $300,000 in savings to his grandson by naming him directly.
Strategy
When Ms. B consulted us in May 2024, we advised her father not to do it that way. As soon as the money was in his grandson's name, the benefits would stop and would not resume until most of the money was spent.
We designed a trust just for this grandson. The money goes into the trust instead of to him, with Ms. B as trustee and her sister as successor. The trust says the money is for needs that government benefits do not cover, such as classes, therapy, travel and a computer, while rent and food stay covered by benefits as far as possible. Because the money is never in his name, it does not count as his asset. The grandfather's own trust was amended at the same time so that the $300,000 would pass directly into the special trust.
The grandfather passed away in June 2026. In July, the trustee of his trust transferred the money into his grandson's special needs trust.
Case Timeline
| Date | Milestone |
|---|---|
| May 2024 | Ms. B consulted us; the grandfather planned to leave his savings to his grandson outright |
| July 2024 | Grandson's special needs trust signed; grandfather amended his own trust |
| June 2026 | Grandfather passed away |
| July 2026 | About $300,000 transferred into the grandson's special needs trust |
| September 2026 | Trust paid for job training classes and a computer; benefits and health coverage continued |
Outcome
Ms. B's son still receives his benefits and health coverage. In September the trust paid his vocational training tuition and bought him a new computer. No one had to go to court or explain to a government agency where the money came from.