Special Needs Trust Fairness Act Signed into Law

The Special Needs Trust Fairness Act corrects a patently false and degrading error in the law that presumed all individuals with disabilities lacked the capacity to handle their own affairs.

Today, the President Signed into law the Special Needs Trust Fairness Act, which corrects an error in the law that presumes that all persons with disabilities lack the mental capacity to handle their own affairs. “D-4-A” special needs trusts were first recognized by Congress in 1993. They help ensure that individuals with disabilities can use what savings they have to provide for their supplemental needs while still qualifying for long-term services and supports from means-tested programs like Medicaid without living in utter destitution. An oversight in the 1993 trust law meant that individuals who did not have a parent, grandparent, or legal guardian had to petition a local court for the creation of their trust. This in turn led to unnecessary legal fees, time wasted, and administrative confusion. The Special Needs Trust Fairness Act corrects this error by allowing individuals with capacity to set up their own trust.